Big Data Firm Splunk Inc. Faces Investor Suit Over Stock Drop

San Francisco software company Splunk Inc. artificially inflated the value of its stock by making misleading statements about its ability to meet financial targets, a suit filed by a class of investors alleges.

Splunk, which provides software solutions for analyzing big data, held a call in October 2020 during which it assured investors everything was on track for its third quarter results, but failed to disclose that the company wasn’t closing deals with its largest customers during that quarter and that it wasn’t hitting previously announced financial targets, the suit says.

The investors say Splunk announced its financial results for ...