INVESTOR ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Alarum Technologies Ltd. and Certain Officers - ALAR

NEW YORK, Feb. 25, 2025 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Alarum Technologies Ltd. ("Alarum" or the "Company") (NASDAQ: ALAR) and certain officers. The class action, filed in the United States District Court for the District of New Jersey, and docketed under 25-cv-01263, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Alarum securities between March 14, 2024 and August 26, 2024, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are an investor who purchased or otherwise acquired Alarum securities during the Class Period, you have until April 15, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action]

Alarum is a global Software as a Service ("SaaS") provider that offers web data collection solutions and a private internet browsing platform to a concentrated customer base.

Alarum operates under a consumption-based business model, under which the Company charges customers for a given product or service based on how much they use it. Specifically, the Company generates SaaS revenues "when customers subscrib[e] to [its] enterprise and consumer access platforms and [pay] for the packages they choose." Given Alarum's concentrated customer base, the spending patterns of even a small number of customers can have a substantial impact on the Company's growth.

Alarum has described itself as a "market leader" that has demonstrated "success in not only retaining, but also significantly expanding [its] engagements with existing customers." However, unbeknownst to investors, Alarum was experiencing difficulties in retaining and expanding its customer engagements. By June 2024 Alarum began seeing reduced customer spending that ultimately resulted in a 20% revenue decrease from the prior month. Notwithstanding the foregoing, the Company consistently maintained at all relevant times that it "deliver[s] strong performance and value to [its] shareholders" and touted that its "revenues and operating cashflow reflect the dedication of [Alarum's] team and the robustness of [its] business model."

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was less effective in retaining and/or expanding customer engagements than it had represented to investors; (ii) the foregoing would impair Alarum's ability to generate consistent revenue growth; (iii) accordingly, Alarum's business and/or financial prospects were overstated; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.

On August 26, 2024, Alarum announced its results for the second quarter of 2024 and issued Q3 2024 guidance. Specifically, Alarum revealed that it was expecting Q3 2024 revenue of $7 million, far short of the $9.2 million revenue figure projected by analysts.

That same day, Alarum hosted an earnings call with investors and analysts to discuss the Company's Q2 2024 results, during which Alarum's Chief Executive Officer Defendant Shachar Daniel attributed the disappointing Q3 2024 revenue guidance to the reduced customer spending Alarum began experiencing in June 2024.

Market analysts were quick to comment on the Company's revelation. For example, on August 27, 2024, Seeking Alpha noted that Alarum's projected Q3 2024 revenue figure "represent[ed] over a 20% decline sequentially and only 3% growth [year-over-year]," and raised several issues with Alarum's disclosure including, among other things, the lack of clarity in the Company's explanation for the drop in customer demand.

On this news, Alarum's American Depositary Receipt ("ADR") price fell $6.77 per ADR, or 31.34%, to close at $14.83 per ADR on August 26, 2024.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.

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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP