Pomerantz LLP

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Kornit Digital Ltd.

We are investigating Kornit Digital Ltd. (KRNT) (“Kornit” or the “Company”) for potential violations of the federal securities laws. 

On May 7, 2019, Spruce Point Capital Management (“Spruce Point”) published a report regarding Kornit, entitled “Teed Up And Printing Rebates”.  The Spruce Point report alleged, among other issues, that Kornit was “not adequately disclosing” the terms of Amazon price rebates; that there was “a discrepancy between reported Amazon revenues in Kornit’s filings”; and Kornit had engaged in “aggressive tactic[s]” with respect to reporting the cost of warrants granted to Amazon, “which the SEC questioned, and made [Kornit] restate results.”  On this news, Kornit’s stock price fell $2.63 per share, or 9.35%, to close at $25.51 per share on May 7, 2019.  Then, on August 6, 2019, post-market, Kornit announced its financial results for the second quarter of 2019, disclosing a significant decline in gross margin, “primarily driven by impact of warrants, product mix and new product introduction.”  On this news, Kornit’s stock price fell sharply during intraday trading on August 7, 2019.