The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Nextdoor Holdings, Inc. (KIND)

The Law Offices of Frank R. Cruz reminds investors of the upcoming April 29, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Nextdoor Holdings, Inc. f/k/a Khosla Ventures Acquisition Co. II (“Nextdoor” or the “Company”) (NYSE: KIND) Class A common stock between July 6, 2021 and November 8, 2022, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On March 1, 2022, Nextdoor released its fourth quarter and full year 2021 financial results, reporting an 18% decline in revenue growth and a 26% decline in average revenue per weekly active user (“ARPU”) growth. On this news, Nextdoor’s stock price fell $0.85, or 13.6%, to close at $5.39 per share on March 4, 2022, thereby injuring investors.

Then on November 8, 2022, Nextdoor disclosed that revenues during the third quarter of 2022 declined sequentially by $1 million and that the Company’s quarterly ARPU growth contracted by 12% compared to the prior year quarter. On this news, Nextdoor’s stock price fell approximately 11% to close at $2.06 per share on November 9, 2022, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Nextdoor’s financial results prior to the Merger had been temporarily inflated by the ephemeral effects of the COVID-19 pandemic, which had pulled forward demand for Nextdoor’s platform and cannibalized future advertising revenue growth; (2) that, rather than being sustained, such growth trends had already begun reversing at the start of the Class Period; (3) that Nextdoor’s total addressable market was materially smaller than the 312 million households represented to investors; (4) that, by the start of the Class Period, Nextdoor’s most important market – the U.S. market – was already substantially saturated, impairing the Company’s ability to monetize users and increase its ARPU or U.S. WAUs; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired Nextdoor common stock during the Class Period, you may move the Court no later than April 29, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240426916183/en/

The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
[email protected]
www.frankcruzlaw.com