New Securities Lawsuits Hit Snowflake, Navan

The class-action suit against Snowflake alleges the company made overly positive statements about its business between June 27, 2023, and February 28, 2024. The core of the complaint is that Snowflake failed to disclose that product efficiency gains and changes in pricing and products were expected to materially reduce consumption and revenue. These lawsuits also question the company's handling and disclosure of CEO Frank Slootman's unexpected retirement. On February 28, 2024, Snowflake announced its financial results and disclosed that it was forecasting increased revenue headwinds. The company cited product efficiency gains, tiered storage pricing, and the expected use of Iceberg Tables by some customers as reasons for the headwinds. Following this news, Snowflake's stock price dropped by $41.72, or 18.14%, to close at $188.28 per share on February 29, 2024. The lawsuit against Navan, filed on behalf of investors who bought stock traceable to its October 31, 2025, IPO, claims the offering documents were misleading. Specifically, the suit alleges Navan didn't disclose a 39% increase in sales and marketing expenses to sustain its growth. This information was revealed in its December 15, 2025, earnings report. Following the disclosure, Navan's stock fell $1.74, or 11.9%, to close at $12.90 per share on December 16, 2025. At the time the lawsuit was filed, the stock had fallen to as low as $9.20 per share, a drop of over 63% from its $25 IPO price. The lawsuit also notes the departure of CFO Amy Butte was announced at the same time. Franklin BSP Realty Trust faces a lawsuit for allegedly making false and misleading statements between November 5, 2024, and February 11, 2026. The suit claims the company overstated its prospects and its ability to maintain its $0.355 dividend. On February 11, 2026, Franklin announced fourth-quarter earnings per share of $0.12, missing estimates by $0.16, and lower-than-expected revenue. The company's CEO stated it had "taken longer to resolve and sell" certain assets than planned. The next day, the company announced it was resetting its quarterly dividend to $0.20 per share, leading to a 14.2% drop in its stock price. Investors in all three cases have until late April 2026 to move the court to be appointed as lead plaintiff. The Rosen Law Firm is a prominent player in these actions, specializing in securities class-action lawsuits and having recovered hundreds of millions of dollars for investors in past years.