Ademi LLP is investigating possible securities fraud claims against Splunk (NASDAQ: SPLK) resulting from inaccurate statements Splunk made regarding its financial statements and prospects.

The investigation focuses on whether Splunk issued false and misleading statements regarding its financial statements and prospects during 2020.  Specifically, Splunk's third quarter results and management’s guidance for fourth quarter were below analysts’ expectations. Revenue for the third quarter was $559 million, down 11% compared to last year. Analysts were expecting revenue of approximately $613 million. Splunk also reported an adjusted loss per share of $1.26, shockingly lower than the $0.09 per share in profit analysts had been predicting.  BTIG stated that Splunk’s explanation for these dismal financial results was “confusing given that most peers in the software space (and particularly in security software) saw relatively strong trends” in the quarter. Most analysts downgraded Splunk, with JPMorgan stating that it was “blindsided” by Splunk’s report.