(NASDAQ GM: EVBG)
Rigrodsky Law, P.A. is investigating potential claims against the officers and directors of Everbridge, Inc. ("Everbridge" or the "Company") on behalf of stockholders. A class action complaint has been filed against Everbridge. The complaint alleges that Everbridge engaged in an unusual buying spree, purchasing nine separate companies. During that same time, defendants misled investors regarding both the significant problems Everbridge was encountering by its multiple acquisitions and the extent to which the revenues it obtained from those acquired companies were being used to mask increasingly stagnant organic growth. Defendants misled investors when they were specifically asked whether in fact the Company was experiencing any integration problems with respect to its acquisition of numerous other companies, saying, for example, as to one acquired company, xMatters, that “integration is just starting, but it’s already going great,” and two months later that integration was “probably ahead of schedule.” In fact, Everbridge was unable to effect complete integration of these acquired companies as their products required multiple different systems, running on different internal databases, with dedicated legacy sales staffs trained and operating differently than those originally with Everbridge, leading many to leave the Company. Defendants also led investors to expect every quarter and fiscal year that it would achieve revenue growth over and above 30%, with acquisitions making up only about 5% of that aggregate figure, and in each such reporting period they boasted that the Company had exceeded its own guidance. However, Everbridge’s publicly available financial statements did not break out aggregate revenue amounts by business segment. The result was a lack of transparency as to the extent to which organic growth was lagging and the Company was only able to continue with this pattern by acquiring other companies and using their legacy revenues to fill in the gaps.