California Cloud Company Faces Investor Suit Over Stock Drop

San Francisco-based cloud platform developer Anaplan Inc. failed to tell investors about sales organization and execution challenges that kept it from closing important deals, and ultimately led to a 25% drop in stock prices, a suit filed in California federal court alleges.

A proposed class of Anaplan investors told the U.S. District Court for the Northern District of California the company made false or misleading statements, and failed to disclose materially adverse facts about its business, operations and prospects.

Specifically, the complaint alleges Anaplan failed to disclose that its financial guidance for calculated billings growth was baseless and unattainable due ...