WILMINGTON, NC – nCino, Inc. (NASDAQ:NCNO), a provider of cloud-based software for financial institutions, announced today that the Delaware Supreme Court has upheld the dismissal of a stockholder lawsuit related to its mergers with nCino OpCo and SimpleNexus.
The legal case, initiated on September 26, 2022, by a purported stockholder of nCino, Inc., alleged fiduciary duty breaches by the company's board of directors, controlling shareholders, and certain officers during the negotiation and approval of the mergers. The complaint was filed in the Delaware Court of Chancery and named Insight Venture Partners, LLC, and other related parties as defendants.
On December 28, 2023, the Delaware Court of Chancery dismissed the complaint in its entirety. This decision was challenged by the plaintiff, who filed a notice of appeal on January 25, 2024. However, on Monday, September 12, 2024, the Delaware Supreme Court summarily affirmed the lower court's ruling, putting an end to the litigation.
The company, which specializes in prepackaged software services and is incorporated in Delaware, has its principal executive offices located in Wilmington, North Carolina.
This legal development follows a series of mergers in which nCino, Inc. became the parent company of nCino OpCo and SimpleNexus, a move that was part of the company's strategic expansion.
The above news is based on an SEC filing.
In other recent news, nCino, a cloud-based software provider, has reported strong financial results for the second quarter of fiscal year 2025. Total revenues reached $132.4 million, with subscription revenues of $113.9 million, and non-GAAP operating income hitting $19.3 million. Despite a slowdown in Remaining Performance Obligations growth, nCino's management remains confident in achieving its 50% net booking growth target by the fiscal year 2025.
Analyst firms Raymond James, Macquarie, Piper Sandler, and Keefe, Bruyette & Woods have provided positive ratings on nCino's shares. Raymond James upgraded nCino from Market Perform to Outperform, citing the company's progression toward a phase of organic growth acceleration. Macquarie and Piper Sandler maintained their positive ratings, highlighting nCino's consistent performance and potential for growth. Keefe, Bruyette & Woods reiterated its Outperform rating, reflecting confidence in nCino's financial prospects and strategic positioning in the market.
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