A securities class action has been filed against Nextdoor Holdings, Inc. (KIND) on behalf of all purchasers of the publicly traded Class A common stock of Nextdoor between July 6, 2021 through November 8, 2022.  This case has been filed in the USDC – N.D.CA.

The complaint alleges that during the Class Period, defendants engaged in a scheme to deceive the market and a course of conduct that artificially inflated the prices of Nextdoor common Class A common stock and operated as a fraud or deceit on purchasers of Nextdoor Class A common stock. When the truth about Nextdoor’s misconduct was revealed, the value of Nextdoor Class A common stock declined precipitously as the prior artificial inflation no longer propped up the stock price. The decline in the price of Nextdoor Class A common stock was the direct result of the nature and extent of defendants’ fraud finally being revealed to investors and the market. The timing and magnitude of the share price decline negate any inference that the losses suffered by plaintiff and other members of the Class were caused by changed market conditions, macroeconomic or industry factors, or company-specific facts unrelated to defendants’ fraudulent conduct. The economic loss, i.e., damages, suffered by plaintiff and other Class members was a direct result of defendants’ fraudulent scheme to artificially inflate the prices of Nextdoor publicly traded Class A common stock and the subsequent significant decline in the value of Nextdoor Class A common stock when defendants’ prior misrepresentations and other fraudulent conduct were revealed.