INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Nextdoor Holdings, Inc. (KIND) Investors

By: Law Offices of Howard G. Smith via Business Wire

March 08, 2024 at 11:00 AM EST

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Nextdoor Holdings, Inc. f/k/a Khosla Ventures Acquisition Co. II (“Nextdoor” or the “Company”) (NYSE: KIND) Class A common stock between July 6, 2021 and November 8, 2022, inclusive (the “Class Period”). Nextdoor investors have until April 29, 2024 to file a lead plaintiff motion.

Investors suffering losses on their Nextdoor investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 215-638-4847 or by email to howardsmith@howardsmithlaw.com.

On March 1, 2022, Nextdoor released its fourth quarter and full year 2021 financial results, reporting an 18% decline in revenue growth and a 26% decline in average revenue per weekly active user (“ARPU”) growth. On this news, Nextdoor’s stock price fell $0.85, or 13.6%, to close at $5.39 per share on March 4, 2022, thereby injuring investors.

Then on November 8, 2022, Nextdoor disclosed that revenues during the third quarter of 2022 declined sequentially by $1 million and that the Company’s quarterly ARPU growth contracted by 12% compared to the prior year quarter. On this news, Nextdoor’s stock price fell approximately 11% to close at $2.06 per share on November 9, 2022, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Nextdoor’s financial results prior to the Merger had been temporarily inflated by the ephemeral effects of the COVID-19 pandemic, which had pulled forward demand for Nextdoor’s platform and cannibalized future advertising revenue growth; (2) that, rather than being sustained, such growth trends had already begun reversing at the start of the Class Period; (3) that Nextdoor’s total addressable market was materially smaller than the 312 million households represented to investors; (4) that, by the start of the Class Period, Nextdoor’s most important market – the U.S. market – was already substantially saturated, impairing the Company’s ability to monetize users and increase its ARPU or U.S. WAUs; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased Nextdoor common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240308843100/en/

Contacts

Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

howardsmith@howardsmithlaw.com

www.howardsmithlaw.com

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INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Nextdoor Holdings, Inc. (KIND) Investors

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