Kahn Swick & Foti Announces Securities Class Action Lawsuit Against Perion Network

Kahn Swick & Foti, LLC, a law firm, has announced a securities class action lawsuit against Perion Network Ltd. (NASDAQ: PERI) on behalf of investors who purchased shares between February 9, 2021 and April 5, 2024. The lawsuit alleges that Perion made false and misleading statements about its search advertising business, which was in decline due to changes in Microsoft Bing's search advertising pricing and mechanisms.

On April 8, 2024, Perion issued a press release announcing preliminary financial results for Q1 2024 and updated full-year 2024 guidance. The company revealed a decline in search advertising activity due to changes in advertising pricing and mechanisms implemented by Microsoft Bing, leading to a reduction in Revenue Per Thousand Impressions (RPM) for Perion and other Microsoft Bing distribution partners. As a result, Perion reduced its revenue guidance for the full 2024 year from the prior range of $860 to $880 million to $590 million to $610 million. This news caused Perion's stock price to plummet by approximately 40% on April 8, 2024.

Why this matters: The significant drop in Perion's stock price and reduced financial guidance underscore the risks and volatility associated with relying heavily on partnerships with major tech companies like Microsoft. The lawsuit seeks to recover losses for shareholders who were adversely affected by the alleged securities fraud.

The lawsuit alleges that Perion made false statements and concealed information about its search advertising business, including that it was not a reliable and significant growth driver, its long-term relationship with Microsoft would not provide stability, and there was an increased risk of Microsoft unilaterally changing its advertising pricing and mechanisms to Perion's detriment. "Perion made false and misleading statements about its search advertising business, which was in decline due to changes in Microsoft Bing's search advertising pricing and mechanisms," according to the lawsuit filed by Kahn Swick & Foti, LLC. Investors who purchased Perion common stock during the class period and suffered losses are encouraged to discuss their legal rights and options with the law firm.

Key Takeaways

• Kahn Swick & Foti, LLC filed a securities class action lawsuit against Perion Network Ltd.
• Lawsuit alleges Perion made false statements about its search advertising business, which declined due to Microsoft Bing changes.
• Perion reduced its 2024 revenue guidance from $860-$880M to $590-$610M, causing a 40% stock price drop.
• Lawsuit seeks to recover losses for shareholders adversely affected by the alleged securities fraud.
• Lawsuit claims Perion concealed information about its search advertising business and its reliance on Microsoft Bing.