Lawsuit filed for Investors in Zendesk, Inc. (NYSE: ZEN) against certain directors of Zendesk filed

The Shareholders Foundation announced that an investor in shares of Zendesk, Inc. (NYSE: ZEN) filed a lawsuit against certain directors of Zendesk over alleged breaches of fiduciary duties by improperly disclosing a data breach to the company’s shareholders.

Investors who are current long term investors in Zendesk, Inc. (NYSE: ZEN) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On July 30, 2019, Zendesk announced its financial results for the second quarter of 2019. In addition, Zendesk disclosed that its sales growth in the Europe, Middle East, and Africa (“EMEA”) and Asia-Pacific (“APAC”) regions “didn’t quite live up to [defendants’] own expectations, and lagg[ed] other regions.” Zendesk blamed a mix of macro and operational issues that had been driving the weakness. With respect to fiscal 2019 guidance, the Company cautioned that it was “maintaining a prudent view on the year as [defendants] gain[ed] a better understanding of the dynamics, internal and external, in EMEA and APAC,” and thus expected ongoing revenue growth of just 30%. Following these disclosures, the price of Zendesk common stock declined precipitously, falling nearly $10 per share to close at $83.56 per share on July 31, 2019.
Prior to September 24, 2019, a third party alerted Zendesk to the fact that the personally identifiable data of its chat and support accounts had been breached. By September 24, 2019, the Company’s internal investigation had revealed that some 10,000 accounts opened before November 2016 had been breached.

On October 2, 2019, Zendesk disclosed that it had experienced a data breach in 2016 involving 10,000 accounts that were activated prior to November 1, 2016. Following this news, the price of Zendesk stock fell approximately $2.00 per share, closing down at $69.81 per share on October 2, 2019.

The plaintiff alleges that Zendesk CEO Mikkel Svane “sold nearly $20 million in Zendesk stock while in possession of material nonpublic information” and other board members, including Elena Gomez and Norman Gennaro, profited off sales of Zendesk stock while possessing non-public information of the data breach.
As a result of the defendants’ alleged breach of fiduciary duties, the plaintiff seeks “extraordinary equitable and/or injunctive relief” and an order directing Zendesk to reform its corporate governance.

Those who purchased shares of Zendesk, Inc. (NYSE: ZEN) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.