Alarum Sued Over Decline in Revenue From Web Data Collection (1)

Alarum Technologies Ltd. failed to disclose falling customer spending on its web data collection services, an investor says in a suit filed Friday over a 31% stock drop.

The company touted its ability to retain and expand customer subscriptions and paid service packages, Niv Velvart says in a proposed class action filed in the US District Court for the District of New Jersey. But by “June 2024 Alarum began seeing reduced customer spending that ultimately resulted in a 20% revenue decrease from the prior month,” Velvart says.

Tel Aviv-based Alarum released financials showing the decline on Aug. 26, 2024, causing ...