Five9 Inc. and former executives must defend against allegations the cloud-based call company misled investors in 2024 when reaffirming revenue guidance, saying sales were strong, and claiming macroeconomic factors didn’t hinder new business.
The investment fund leading the case sufficiently alleged CEO Michael Burkland and former chief financial officer Barry Zwarenstein‘s deliberate recklessness or intent to defraud investors, Judge P. Casey Pitts said Monday. Burkland admitted in a meeting Five9 underperformed in the first quarter toward meeting revenue projections and Zwarenstein had access to information about revenue growth and the macroeconomic impact, according to former employees with adequately-pleaded personal ...