Sprinklr Wins New York Federal Court Dismissal of Securities Class Action
San Diego – May 4, 2026 – Cooley secured a dismissal for its client Sprinklr (NYSE: CXM), an AI-native software platform for customer experience management, in a securities class action before the US District Court for the Southern District of New York.
The lawsuit had challenged Sprinklr’s strategy of shifting staff and resources from its long‑standing Core Suite products to its newer contact‑center‑as‑a‑service (CCaaS) platform, Sprinklr Service, and alleged that the company did not properly inform investors about this shift or its risks. The case followed stock‑price declines after Sprinklr disclosed in December 2023 that its CCaaS push had slowed Core Suite progress and, in June 2024, withdrew a long‑term revenue projection.
On March 17, 2025, Cooley moved to dismiss, explaining that Sprinklr had repeatedly described its investment in CCaaS, the competitive and operational risks of entering that market, and its expectations for subscription‑based revenue. The motion further argued that the complaint did not show that Sprinklr intended to mislead investors, noting among other things that the company’s CEO did not sell any stock during the period at issue and that Sprinklr repurchased more than $130 million of its own shares—conduct inconsistent with an effort to deceive the market.
On March 31, 2026, Judge Lorna Schofield granted Sprinklr’s motion to dismiss the lawsuit. The court held that the plaintiffs had not demonstrated plausible basis to infer intentional wrongdoing and that the challenged statements were accurate in context, already disclosed, too general to support liability, or protected as forward‑looking statements. While courts often allow investors to revise their complaints after an initial dismissal, Judge Schofield instead directed the plaintiffs to first explain how they could fix the problems the court identified.
On April 21, the plaintiffs declined to amend, ending the case after a single round of briefing on the motion to dismiss.
The Cooley team representing Sprinklr was led by Koji Fukumura with Sarah Topol Egoul and Trevor O’Bryan.
The case is In re: n re Sprinklr, Inc. Securities Litigation, Case No. 1:24-cv-06132.
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