Zuora Investors Sue Over Product Integration Issues, Stock Drop

Zuora Inc. allegedly misled investors about its success in integrating a newly acquired revenue recognition product, leading to a stock drop, a June 14 complaint said.

The cloud-based subscription management platform didn’t tell investors about problems related to its RevPro product, the would-be class complaint filed in the U.S. District Court for the Northern District of California said.

Zuora allegedly failed to inform investors that it didn’t have adequate resources to implement the new product, which it acquired after a 2017 merger. RevPro was designed to help Zuora customers implement new accounting standards, but the company didn’t tell investors demand ...