Gartner Faces Class Action Lawsuit Over Securities Fraud Allegations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy IT?
Source: Globenewswire
- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Gartner, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by May 18, 2026.
- Contract Value Decline: Gartner reported a 7% decline in contract value growth rate in its Q2 2025 earnings, resulting in a stock price drop of 27.55% to $243.93 per share on the announcement date.
- Consulting Segment Shortfall: On February 3, 2026, Gartner disclosed a further 2% decline in contract value growth and a significant shortfall in its Consulting segment's performance, causing a 20.87% drop in stock price to $160.16 per share.
- Legal Background: Pomerantz LLP, a premier firm in corporate and securities class litigation for over 85 years, has a history of recovering multimillion-dollar damages for victims of securities fraud and corporate misconduct.
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Analyst Views on IT
Wall Street analysts forecast IT stock price to rise
11 Analyst Rating
4 Buy
6 Hold
1 Sell
Moderate Buy
Current: 157.780
Low
150.00
Averages
190.70
High
240.00
Current: 157.780
Low
150.00
Averages
190.70
High
240.00
About IT
Gartner, Inc. delivers actionable, objective business and technology insights. Its segments include Business and Technology Insights (Insights), Conferences, and Consulting. The Insights segment delivers independent, objective insight to leaders across an enterprise through subscription services that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts located around the globe. The Conferences segment is designed for information technology (IT) and business executives as well as decision-makers looking to adapt and evolve their organizations through disruption and uncertainty, navigate risks and prioritize investments. The Consulting segment serves chief information officers and other senior executives to optimize technology investments and drive business impact. It also provides solutions for a range of IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gartner Q1 2026 Earnings Exceed Expectations
- Strong Financial Performance: Gartner reported Q1 revenue of $1.5 billion, EBITDA of $395 million, adjusted EPS of $3.32, and free cash flow of $371 million, all exceeding market expectations, demonstrating the company's resilience and profitability amid uncertainty.
- Contract Value Growth: The total contract value reached $5.3 billion in Q1, reflecting a 1% year-over-year increase, with a 3.5% growth excluding U.S. federal contracts, indicating stable growth in core markets and sustained client demand.
- Optimistic Future Outlook: The company expects full-year EBITDA to be at or above $1.545 billion, adjusted EPS to exceed $13.25, and free cash flow to reach at least $1.16 billion in 2026, reflecting management's confidence in future performance and commitment to ongoing investments.
- Market Environment Challenges: Despite the optimistic outlook, management noted a slowdown in client decisions in March, leading to extended sales cycles, particularly in regions affected by geopolitical factors, which may pose short-term performance pressures.
See More
Gartner Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Gartner, Inc. is facing a securities fraud class action lawsuit due to misleading statements made between February 4, 2025, and February 2, 2026, potentially impacting investors significantly.
- Stock Price Plunge: On August 5, 2025, Gartner reported a decline in contract value growth from 7% to 5%, resulting in a 27.6% drop in stock price to $243.93 per share, which severely undermined investor confidence.
- Continued Decline: On February 3, 2026, Gartner disclosed that contract value growth had further declined to only 1% year-over-year, causing another 20.9% drop in stock price to $160.16 per share, exacerbating investor losses.
- Legal Support: Glancy Prongay Wolke & Rotter LLP is encouraging affected investors to reach out for potential claims recovery without upfront costs, highlighting the critical role of legal assistance in securities litigation.
See More
Gartner Class Action Lawsuit Notification
- Class Action Notification: Rosen Law Firm reminds investors who purchased Gartner stock between February 4, 2025, and February 2, 2026, that they must apply to be lead plaintiff by May 18, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Investors joining the class action will not incur any upfront costs, as attorney fees will be collected through a contingency fee arrangement, allowing them to pursue legal remedies without financial burden.
- Lawsuit Background: The lawsuit alleges that Gartner made false or misleading statements regarding its growth rates and failed to disclose its inability to meet consulting revenue targets amid industry challenges, resulting in investor losses when the truth emerged.
- Law Firm Advantage: Rosen Law Firm is renowned for its successful track record in securities class actions, having secured the largest settlement against a Chinese company and hundreds of millions for investors, emphasizing the importance of selecting qualified legal counsel for effective representation.
See More
Class Action Lawsuit Reminder Against Gartner, Inc.
- Lawsuit Background: The Schall Law Firm reminds investors of a class action lawsuit against Gartner, Inc. (NYSE:IT) for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities transactions from February 4, 2025, to February 2, 2026.
- False Statements: The complaint alleges that Gartner made false and misleading statements, claiming it could minimize seasonality risks and exaggerating contract value (CV) growth potential, which led to investor losses.
- Market Reaction: As the market learned the truth about Gartner's situation, investor losses significantly increased, indicating a decline in public trust due to the company's lack of solid basis for its claims.
- Investor Action: The Schall Law Firm encourages affected investors to contact them before May 18, 2026, to participate in the lawsuit and seek compensation, emphasizing that the class has not yet been certified, necessitating action to protect their rights.
See More
Sandisk Shares Surge 429% Amid AI Demand, Future Growth Promising
- Earnings Beat: Sandisk's fiscal Q3 revenue surged 350% year-over-year to $5.95 billion, significantly exceeding the $4.7 billion consensus estimate, indicating robust performance driven by soaring demand from AI data centers and edge devices, which is expected to further propel stock prices upward.
- Profitability Surge: The company reported adjusted earnings of $23.41 per share, a substantial improvement from a loss of $0.30 per share in the prior year, reflecting enhanced profitability in a high-demand environment, likely attracting more investor interest.
- Long-Term Contracts Signed: Sandisk secured three long-term contracts worth $42 billion last quarter and added two more in the current quarter, indicating a strengthening revenue pipeline and significant future growth potential.
- Strong Market Demand: NAND flash prices are projected to rise by 234% in 2026, while the demand for storage in smartphones and PCs continues to grow, ensuring Sandisk's earnings growth in the coming years, with stock prices potentially reaching $4,000.
See More
Gartner Faces Class Action Lawsuit Over Securities Fraud Allegations
- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Gartner, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by May 18, 2026.
- Contract Value Decline: Gartner reported a 7% decline in contract value growth rate in its Q2 2025 earnings, resulting in a stock price drop of 27.55% to $243.93 per share on the announcement date.
- Consulting Segment Shortfall: On February 3, 2026, Gartner disclosed a further 2% decline in contract value growth and a significant shortfall in its Consulting segment's performance, causing a 20.87% drop in stock price to $160.16 per share.
- Legal Background: Pomerantz LLP, a premier firm in corporate and securities class litigation for over 85 years, has a history of recovering multimillion-dollar damages for victims of securities fraud and corporate misconduct.
See More
Gartner Q1 2026 Earnings Exceed Expectations
- Strong Financial Performance: Gartner reported Q1 revenue of $1.5 billion, EBITDA of $395 million, adjusted EPS of $3.32, and free cash flow of $371 million, all exceeding market expectations, demonstrating the company's resilience and profitability amid uncertainty.
- Contract Value Growth: The total contract value reached $5.3 billion in Q1, reflecting a 1% year-over-year increase, with a 3.5% growth excluding U.S. federal contracts, indicating stable growth in core markets and sustained client demand.
- Optimistic Future Outlook: The company expects full-year EBITDA to be at or above $1.545 billion, adjusted EPS to exceed $13.25, and free cash flow to reach at least $1.16 billion in 2026, reflecting management's confidence in future performance and commitment to ongoing investments.
- Market Environment Challenges: Despite the optimistic outlook, management noted a slowdown in client decisions in March, leading to extended sales cycles, particularly in regions affected by geopolitical factors, which may pose short-term performance pressures.
See More
Gartner Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Gartner, Inc. is facing a securities fraud class action lawsuit due to misleading statements made between February 4, 2025, and February 2, 2026, potentially impacting investors significantly.
- Stock Price Plunge: On August 5, 2025, Gartner reported a decline in contract value growth from 7% to 5%, resulting in a 27.6% drop in stock price to $243.93 per share, which severely undermined investor confidence.
- Continued Decline: On February 3, 2026, Gartner disclosed that contract value growth had further declined to only 1% year-over-year, causing another 20.9% drop in stock price to $160.16 per share, exacerbating investor losses.
- Legal Support: Glancy Prongay Wolke & Rotter LLP is encouraging affected investors to reach out for potential claims recovery without upfront costs, highlighting the critical role of legal assistance in securities litigation.
See More
Gartner Class Action Lawsuit Notification
- Class Action Notification: Rosen Law Firm reminds investors who purchased Gartner stock between February 4, 2025, and February 2, 2026, that they must apply to be lead plaintiff by May 18, 2026, to participate in the class action and seek compensation.
- Fee Arrangement: Investors joining the class action will not incur any upfront costs, as attorney fees will be collected through a contingency fee arrangement, allowing them to pursue legal remedies without financial burden.
- Lawsuit Background: The lawsuit alleges that Gartner made false or misleading statements regarding its growth rates and failed to disclose its inability to meet consulting revenue targets amid industry challenges, resulting in investor losses when the truth emerged.
- Law Firm Advantage: Rosen Law Firm is renowned for its successful track record in securities class actions, having secured the largest settlement against a Chinese company and hundreds of millions for investors, emphasizing the importance of selecting qualified legal counsel for effective representation.
See More
Class Action Lawsuit Reminder Against Gartner, Inc.
- Lawsuit Background: The Schall Law Firm reminds investors of a class action lawsuit against Gartner, Inc. (NYSE:IT) for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities transactions from February 4, 2025, to February 2, 2026.
- False Statements: The complaint alleges that Gartner made false and misleading statements, claiming it could minimize seasonality risks and exaggerating contract value (CV) growth potential, which led to investor losses.
- Market Reaction: As the market learned the truth about Gartner's situation, investor losses significantly increased, indicating a decline in public trust due to the company's lack of solid basis for its claims.
- Investor Action: The Schall Law Firm encourages affected investors to contact them before May 18, 2026, to participate in the lawsuit and seek compensation, emphasizing that the class has not yet been certified, necessitating action to protect their rights.
See More
Sandisk Shares Surge 429% Amid AI Demand, Future Growth Promising
- Earnings Beat: Sandisk's fiscal Q3 revenue surged 350% year-over-year to $5.95 billion, significantly exceeding the $4.7 billion consensus estimate, indicating robust performance driven by soaring demand from AI data centers and edge devices, which is expected to further propel stock prices upward.
- Profitability Surge: The company reported adjusted earnings of $23.41 per share, a substantial improvement from a loss of $0.30 per share in the prior year, reflecting enhanced profitability in a high-demand environment, likely attracting more investor interest.
- Long-Term Contracts Signed: Sandisk secured three long-term contracts worth $42 billion last quarter and added two more in the current quarter, indicating a strengthening revenue pipeline and significant future growth potential.
- Strong Market Demand: NAND flash prices are projected to rise by 234% in 2026, while the demand for storage in smartphones and PCs continues to grow, ensuring Sandisk's earnings growth in the coming years, with stock prices potentially reaching $4,000.
See More
Gartner Faces Class Action Lawsuit Over Securities Fraud Allegations
- Class Action Filed: Pomerantz LLP has announced a class action lawsuit against Gartner, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by May 18, 2026.
- Contract Value Decline: Gartner reported a 7% decline in contract value growth rate in its Q2 2025 earnings, resulting in a stock price drop of 27.55% to $243.93 per share on the announcement date.
- Consulting Segment Shortfall: On February 3, 2026, Gartner disclosed a further 2% decline in contract value growth and a significant shortfall in its Consulting segment's performance, causing a 20.87% drop in stock price to $160.16 per share.
- Legal Background: Pomerantz LLP, a premier firm in corporate and securities class litigation for over 85 years, has a history of recovering multimillion-dollar damages for victims of securities fraud and corporate misconduct.
See More
