SAN DIEGO--(BUSINESS WIRE)--Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired UiPath, Inc. (NYSE: PATH) securities between December 1, 2023 and May 29, 2024. UiPath is a business automation software company.
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The Allegations: Robbins LLP is Investigating Allegations that UiPath, Inc. (PATH) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants touted the success of UiPath's turnaround strategy. Specifically, defendants asserted that UiPath’s Business Automation Platform “enables us to close larger, more strategic deals” and that its AI-powered products “set[] us apart from the competition.” Plaintiff alleges, however that UiPath’s turnaround strategy had failed. Fruitless investments and inconsistent execution plagued the Company’s overhauled go-to-market strategy. Additionally, far from a competitive strength, UiPath’s AI-powered Business Automation Platform suffered from the Company’s inability to adequately scale its AI-powered tools and caused “confusion” among customers. As a result, UiPath experienced significant difficulties closing and/or expanding large multiyear deals.
The complaint alleges that on May 29, 2024, UiPath announced the sudden departure of defendant Enslin as CEO and the reappointment of defendant Dines as CEO. On the same day, UiPath announced disappointing 1Q 25 financial results and significantly cut its FY 25 revenue guidance by 10%, or $150 million, to a range of $1.405 billion to $1.410 billion. UiPath attributed the poor results and guidance to “contract execution challenges on large deals,” an inadequate “execution strategy to scale” the Company’s AI-powered growth products “to reach their full potential,” and that “investments we have made to reaccelerate growth have fallen short of our expectations, [and] made us less agile in responding to customer needs.” On this news, the price of UiPath stock declined $6.23 per share, or more than 34%, from $18.30 per share on May 29, 2024, to $12.07 per share on May 30, 2024.
What Now: You may be eligible to participate in the class action against UiPath, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by August 19, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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