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Investors who purchased or otherwise acquired Everbridge Inc. publicly traded common stock between Feb. 18, 2020, and Feb. 24, 2022, may be eligible to claim a cash payment from a class action settlement.
Everbridge Inc., David Meredith and Patrick Brickley agreed to pay $85 million to settle a securities class action lawsuit alleging they misled investors about the company's acquisitions. The lawsuit claimed the defendants misrepresented how well Everbridge integrated acquired businesses and how much xMatters added to its 2021 revenue.
Who can file a claim?
The settlement includes all persons and entities who purchased or otherwise acquired Everbridge Inc. publicly traded common stock between Feb. 18, 2020, and Feb. 24, 2022, inclusive, and experienced alleged damages as a result.
Additional details
- Both individuals and entities can be class members.
- The settlement includes investors who held shares in their own name and those who held through a brokerage firm or other third party.
- The actual beneficial owner or a legal representative must submit the claim.
- Joint owners must each sign the claim form.
- Executors, administrators, guardians, conservators, legal representatives and trustees may submit claims on behalf of others and must provide proof of authority.
- Claimants filing for multiple accounts must submit a separate claim form for each account.
How much can class members get?
The total settlement fund is $85,000,000. The amount each class member will receive depends on several factors:
- The number of valid claims submitted
- The number of shares purchased or acquired during the class period
- The timing of each purchase and sale
- The total recognized claims of all claimants
The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:
- The estimated average recovery is about $2.32 per allegedly damaged share before deductions. After estimated attorneys' fees and expenses of about $0.67 per share, the estimated average recovery is about $1.65 per share.
- Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
- The settlement administrator will calculate a recognized loss for each share bought during the class period using the court-approved plan of allocation:
- Out-of-pocket loss is the purchase price minus the sale price, excluding fees, taxes and commissions.
- Alleged artificial inflation is $70.76 per share from Feb. 18, 2020, through Dec. 9, 2021, and $16.29 per share from Dec. 10, 2021, through Feb. 24, 2022.
- The lookback average is the average closing price from Feb. 25, 2022, through the sale date (Table 2 on Page 13 of the class notice).
- For shares sold before Dec. 10, 2021, the recognized loss is zero.
- For shares sold from Dec. 10, 2021, through Feb. 24, 2022, the recognized loss is the lesser of the purchase-date inflation minus the sale-date inflation or the out-of-pocket loss.
- For shares sold from Feb. 25, 2022, through May 25, 2022, the recognized loss is the lesser of the purchase-date inflation, the purchase price minus the lookback average or the out-of-pocket loss.
- For shares held as of the close of trading on May 25, 2022, the recognized loss is the lesser of the purchase-date inflation or the purchase price minus $42.16, the average closing price during the 90-day lookback period.
- The settlement administrator will set any recognized loss that calculates to a negative number to zero.
- If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
- Class members whose payment would be less than $10 will not receive a payout.
How to claim an Everbridge securities class action settlement payment
Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Nov. 25, 2026.
Settlement administrator's mailing address: Everbridge Securities Settlement, c/o Verita Global LLC, P.O. Box 301170, Los Angeles, CA 90030-1170
Proof or documentation required to submit a claim
All class members must provide the last four digits of their Social Security number or their full taxpayer identification number. They must also provide holdings and transaction information, including:
- Number of shares held as of Feb. 17, 2020
- Trade dates for purchases during the class period and sales through May 25, 2022
- Number of shares purchased, acquired or sold
- Total purchase, sale or acquisition price
- Number of shares held as of May 25, 2022
Class members must also attach documentation supporting their transactions. Acceptable proof includes:
- Broker trade confirmations
- Other documentation of the transactions
Payout options
- Physical check
$85 million settlement fund
The $85,000,000 settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $23,800,000
- Attorneys' expenses: Up to $675,000
- Payments to eligible class members: Remainder of the fund
Important dates
- Deadline to file a claim: Nov. 25, 2026
- Opt-out deadline: Nov. 25, 2026
- Fairness hearing: Dec. 17, 2026
When is the Everbridge securities class action settlement payout date?
The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Everbridge and certain individual defendants made materially misleading statements and omissions about how well the company integrated its acquisitions and how much xMatters contributed to its 2021 revenue. The plaintiffs claimed these statements artificially inflated Everbridge's stock price and caused investor losses when corrective information entered the market.
The defendants denied all allegations of wrongdoing but agreed to settle to avoid the burden, expense, uncertainty and risk of further litigation.
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