Investors who bought Kornit Digital ordinary shares during the class period, or acquired shares tied to the company's November 2021 secondary offering, may claim from a proposed $19.5 million securities settlement. The notice estimates an average recovery of $0.53 per eligible share before fees and costs, but actual payments will depend on transaction history and the court-approved allocation plan.
The settlement resolves allegations that Kornit and two former executives made false or misleading statements about the textile-printing company's business. The defendants deny wrongdoing. Investors must submit a claim with transaction records by December 10, 2026.
Which Kornit investors may be included?
The settlement class generally covers people and entities that purchased or otherwise acquired Kornit ordinary shares from February 17, 2021, through July 5, 2022, inclusive. It also includes investors whose shares were purchased pursuant or traceable to Kornit's November 2021 secondary offering.
The notice excludes the defendants, specified family members and related entities, underwriters and controlling affiliates, certain insurers, and identified Amazon entities. It contains an exception that can keep some independently owned investment funds in the class even when an underwriter or affiliate has a nonmajority interest or advisory role.
Receiving a mailed notice does not itself prove eligibility. Investors need to evaluate their actual Kornit transactions and submit records with the claim.
The 53-cent figure is an estimate, not a rate
The notice's $0.53-per-share estimate assumes that all eligible shares participate and is calculated before deductions. It is not a promise that every share will receive 53 cents.
The net fund will be the $19.5 million plus interest, minus taxes, administration costs, court-approved legal fees and litigation expenses, and any other approved costs. Class counsel plans to request fees of up to 22% of the fund and litigation expenses of up to $350,000. The notice estimates those requested fees and expenses at an average cost of $0.13 per affected share.
An individual recovery can be higher or lower depending on purchase and sale dates and prices, recognized losses, the total value of approved claims and the final plan adopted by the court.
Recognized loss depends on when shares were bought and sold
The proposed allocation plan calculates a recognized loss amount for each documented Kornit purchase or acquisition during the class period. The formulas are designed to account for alleged artificial inflation and two alleged corrective-disclosure dates: May 11 and July 5, 2022.
A trading loss does not automatically equal a settlement-recognized loss, and a profitable account is not necessarily evaluated simply by counting shares. Transactions sold before an alleged disclosure, held through one or both disclosures, or acquired at different points in the class period can receive different treatment.
The calculations are used to divide the net fund proportionally. They are not estimates of what a claimant will actually be paid, and the court may approve a modified or different allocation plan.
What the case alleged and why it settled
Lead plaintiffs alleged that Kornit, former chief executive Ronen Samuel and former chief financial officer Alon Rozner made material misrepresentations or omissions concerning Kornit's business and operations. They claimed the statements inflated the share price and that later disclosures caused declines.
The notice also describes substantial litigation risk. A dismissal ruling eliminated more than 90% of the alleged misstatements and all Securities Act claims, while allowing claims tied to five statements to continue. Defendants maintained that the remaining statements were not false or misleading, were made without fraudulent intent, and did not cause the claimed investor losses.
The $19.5 million agreement is a compromise. It is not a court finding that Kornit or the individual defendants violated securities laws.
Brokerage records are essential to the claim
The claim form requires dates, quantities and prices for relevant Kornit purchases, acquisitions and sales, supported by brokerage statements or other adequate records. Investors should report all transactions requested by the form, not only trades they believe lost money.
Participants in an ERISA retirement or benefit plan should not list Kornit shares purchased through that plan on an individual claim. The notice says the plan itself may submit claims for plan purchases; an individual should include only qualifying shares acquired outside the ERISA plan.
Claims must be submitted online or mailed with a postmark by December 10, 2026. Investors should keep a complete copy and proof of submission because claims processing in securities settlements can take substantial time.
The remaining court deadlines
Requests for exclusion and objections must be received by October 28, 2026. Opting out gives up any settlement payment while preserving the ability to pursue released claims independently, subject to applicable time limits.
The settlement hearing is scheduled for November 18, 2026, at 3 p.m. Eastern in federal court in Newark, New Jersey, although the court may change the date, location or format. Distribution will occur only after approval, any appeals and claims processing are complete.