Wolf Popper LLP Announces Investigation on Behalf of Investors in IronNet, Inc.
NEW YORK, December 20, 2021: Wolf Popper LLP is investigating potential securities claims on behalf of purchasers of IronNet, Inc. (“IronNet”) common stock (NYSE: IRNT). IronNet offers cybersecurity solutions through its Collective Defense platform.
On March 15, 2021, LGL Systems Acquisition Corp. (“LGL”; NYSE: DFNS), a special purpose acquisition company, announced it would combine with IronNet Cybersecurity, Inc. (a predecessor to IronNet, referred to collectively as “IronNet”). The investor presentation filed by LGL on March 15, 2021 represented that IronNet was projected to generate $54 million in revenue in fiscal 2022. A final proxy statement was filed by LGL on August 6, 2021, which also projected IronNet fiscal 2022 revenue of $54 million. In an August 10, 2021 press release, IronNet updated its forecasted revenue “[d]ue to shifts in the anticipated closing of several large new customer contracts…” and lowered fiscal 2022 revenue guidance to between $43 and $45 million. IronNet also stated in that press release that “[a]s a result of greater awareness around cyber vulnerabilities, budget allocations for IronNet’s solution have been expanding” and that “IronNet now expects its annual recurring revenue (ARR) to increase to $75 million by the end of fiscal 2022 and to continue its expansion to $129 million by the end of fiscal 2023.” The merger closed on August 26, 2021, with LGL changing its name to IronNet, Inc. and its stock symbol to NYSE: IRNT.
IronNet announced its fiscal second quarter results on September 14, 2021 and reaffirmed its full year revenue and annual recurring revenue guidance. IronNet then blindsided investors after the market closed on December 15, 2021, when it announced its fiscal third quarter results and dramatically lowered its fiscal year 2022 revenue guidance to $26 million and its annual recurring revenue to $30 million. Management blamed “…government delays in getting funding through to federal budgets.” Furthermore, IronNet said its Chief Revenue Officer was leaving on December 31, 2021.
On this news, IronNet’s stock price fell $2.14 per share, or over 31%, to close at $4.66 on December 16, 2021.
Investors who have lost over $50,000 trading in IronNet’s common stock and who would like to discuss the investigation should contact Joshua Ruthizer at (212) 451-9668, (877) 370-7703, or email@example.com.
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Joshua W. Ruthizer
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