Nextdoor Holdings Faces Multiple Class Action Lawsuits Over Alleged Misleading Financial Statements

Investors claim inflated financial results and overestimated growth prospects led to significant stock price drops.

Class action lawsuits have been filed against Nextdoor Holdings, Inc. for allegedly misleading investors about its financial health and growth prospects.
The lawsuits claim that Nextdoor's financial results were temporarily inflated due to the COVID-19 pandemic, leading to an overestimation of future revenue growth.
Investors allege that Nextdoor's total addressable market was significantly smaller than represented, and the U.S. market was nearly saturated at the start of the class period.
Following the disclosure of declining revenue growth, ARPU, and U.S. weekly active users, Nextdoor's stock price fell significantly, causing investor losses.
Investors have until April 29, 2024, to apply to be appointed as lead plaintiff in the lawsuit.