February 27, 2023. The parties in the Splunk Inc. Securities Litigation (Northern District of California) agreed to a $30 million class action settlement. Plaintiffs alleged that Splunk had falsely claimed that the company was on track to produce $1 billion in operating cash flow by 2023. Poor quarterly financial results that allegedly revealed previously concealed adverse conditions and corrected the misrepresentations subsequently sent the Splunk stock price downward. Professor Steven Feinstein of Babson College and Crowninshield Financial Research, Inc. conducted research and provided expert testimony establishing that Splunk stock traded in an efficient market, and that damages sustained by Splunk stock investors could be computed for all class members using a common methodology.
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