ON24 Investors Get Suit Over Pre-IPO Demand, Revenue Revived

ON24 Inc. investors adequately alleged the webinar company made misleading statements about customer churn and revenue in the run-up to its 2021 initial public offering, the Ninth Circuit ruled Wednesday.

The lead investor, a European equity fund, “sufficiently alleges that ON24 knew that the risk of material churn and downselling had started to come to fruition before the IPO yet disclosed only that those risks may occur,” the US Court of Appeals for the Ninth Circuit said in an unsigned, unpublished opinion. The suit names underwriters, including Goldman Sachs & Co. and J.P. Morgan Securities LLC, as defendants in addition ...