According to the Complaint, Nextdoor Holdings, Inc. began as Khosla Ventures Acquisition Co. II, a blank check company formed by the Sponsor Defendants. On July 6, 2021, KV Acquisition Co. and Nextdoor Private jointly announced they had entered into a merger agreement.
Nextdoor operates a hyperlocal online social networking platform that connects neighbors, public agencies, and businesses via the internet. Nextdoor purports to facilitate this online community through various features and technological functions including a news feed where “neighbors” (i.e., users) can view posts, discussions, and pictures from other neighbors, as well as notifications, comments, and groups. At bottom, these features enable users to exchange information, services, and goods.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (a) that Nextdoor’s financial results prior to the Merger had been temporarily inflated by the ephemeral effects of the COVID-19 pandemic, which had pulled forward demand for Nextdoor’s platform and cannibalized future advertising revenue growth; (b) that, rather than being sustained, such growth trends had already begun reversing at the start of the Class Period; (c) that Nextdoor’s total addressable market was materially smaller than the 312 million households represented to investors; (d) that, by the start of the Class Period, Nextdoor’s most important market, the U.S. market, was already substantially saturated, impairing the Company’s ability to monetize users and increase its ARPU or U.S. WAUs; (e) that, as a result of (a)-(d) above, Nextdoor’s revenue guidance for fiscal year 2022 had no reasonable basis in fact and the Company was tracking tens of millions of dollars below the revenue trajectory provided to investors.
On July 12, 2024, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an Amended Complaint on September 10. Defendants filed a Motion to Dismiss the Amended Complaint on November 12.
On May 19, 2025, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.
On June 16, 2025, Lead Plaintiff filed a second Amended Complaint.
