b'The following month, Zendesk continued to make positiveexecutive hiring to provide adequate leadership in both statements about its global footprint being a completeregions. The CEO also noted, some of these smaller advantage, but reiterated that Zendesk was closelyregions [that] have the same revenues that the entire watching APAC[,] noting there was [n]othing alarmingcompany had when we went publictheres like three therejust some uneven performance[.]guys and a dog managing that businesswe need to do Separately, throughout 2019, Zendesks public filingsbetter and we are investing to do a lot better on that.represented that it maintained a comprehensive securityOn October 2, 2019, Zendesk announced that it was program designed to help safeguard the security andrecently alerted from a third party of a potential security integrity of customers data, that it engaged in regularmatter and, on September 24, Zendesk identified a data review, including third-party audits of its program, andbreach it experienced prior to November 2016 involving that it was compliant with EU data security regulations. Itspersonal information of 15,000 customer accounts public filings also contained cautionary statements aboutand authentication information for an additional 7,000 the risk of unauthorized access or security breaches whichcustomer accounts. Zendesks stock fell $2.90 per share could remain undetected, noting that has in fact happenedto close at $69.81 per share that day. in the past.On November 22, 2019, Zendesk announced that its On July 30, 2019, Zendesk announced its 2Q 2019investigation revealed that the breach was caused financial results, which were positive and above its ownby a small number of AWS keys being compromised guidance, but overall growth of 37% was slightly belowafter being provided to a third party vendor. It further the 38%-41% range in each of the previous eight quarters.announced various enhancements to its data security Zendesk reduced its overall cash flow outlook andsince the 2016 breach, including expansion of multifactor increased its outlook for losses for the remainder of 2019.authentication in 2016 and 2017 and increased security That same day, Zendesks CEO stated on an earnings callmonitoring and logging.that growth in EMEA and APAC although still solid, didntInvestors filed putative class actions against Zendesk and quite live up to [Zendesks] expectations, and is laggingcertain of its officers, alleging violations of Sections 10(b) in other regions. The CFO reported that growth in EMEAand 20(a) of the 1934 Act, and Rule 10b-5 promulgated in particular was down to 33% from 38% the previousthereunder, asserting that Zendesk and its officers made quarter, noting that macroeconomic factors such asfalse and misleading statements about performance deals taking longer to close played a role, and statingand capabilities in the EMEA and APAC markets and its that the Company needed to invest its leadership in thesedata security systems. Defendants moved to dismiss the regions. The following day, Zendesks stock price droppedamended complaint, which the court granted, with leave from $93.12 to $83.65 per share. Over the ensuingto amend, holding that the challenged statements were months, Zendesk announced that it would adopt changeseither not pled to be false or misleading when made or to its EMEA and APAC strategies including implementingwere inactionable puffery, and that plaintiffs did not allege best practices from its U.S. Business and conduct 46'