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ON24, INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES

ON24, INC.

Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of ON24, Inc. (NYSE: ONTF)  between January 31, 2021 and November 3, 2021. The lawsuit seeks to recover ON24, Inc. shareholders’ investment losses.

If you purchased shares of ON24, Inc. between January 31, 2021 and November 3, 2021 and would like to discuss your legal rights and/or options, please click “Join Class Action” above.

New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of ON24, Inc. (“ON24” or the “Company”) (NYSE: ONTF) between January 31, 2021 and November 3, 2021, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Northern District of California and alleges violations of §§11, 12 and 15 of the Securities Act, 15 U.S.C. §§ 77k, 77l(a)(2), and 77o.

On or about February 3, 2021, ON24 conducted its IPO, offering 8,560,930 shares of its common stock to the public at a price of $50 per share (the “Offering Price”) for anticipated proceeds of approximately $428,046,500.

According to the complaint, ON24, Inc. and the Offering Documents made false and/or misleading statements and failed to disclose that the surge in COVID-19 customers observed in the lead up to the IPO consisted of a significant number that did not fit ON24’s traditional customer profile, and, as a result, were significantly less likely to renew their contracts and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

On August 10, 2021, ON24 offered revenue guidance for the remainder of the year of no more than $48.5 million in third quarter 2021 and $204.2 million for fiscal year 2021, missing analyst consensus by $2.7 million and $4.5 million, respectively. During ON24’s analyst call held that same day, ON24’s President and CEO, defendant Sharat Sharan, admitted that ON24 “experienced higher than expected churn and down-sell from customers [it] signed up in the second quarter of last year during the peak of COVID.” He then added, “[t]his higher churn was primarily in the first-time renewal cohort, customers who signed . . . one-year contracts last year and who are up for renewal.” On this news, ON24’s stock price declined approximately 31%, damaging investors.

By the commencement of the ON24 class action lawsuit, ON24 stock traded as low as $18.66 per share, a nearly 63% decline from the $50 per share IPO price.

If you wish to serve as lead plaintiff, you must move the Court no later than January 3, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.

ATTORNEY ADVERTISING. © 2021 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact Information:

Joe Seidman
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
seidman@bernlieb.com