SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that it has filed a class action lawsuit seeking to represent purchasers of UiPath, Inc. (NYSE: PATH) common stock between April 21, 2021 and March 30, 2022, inclusive (the “Class Period”). Captioned Gera v. UiPath, Inc., No. 23-cv-07908 (S.D.N.Y.), the UiPath class action lawsuit charges UiPath and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff, please provide your information here:
https://www.rgrdlaw.com/cases-uipath-inc-class-action-lawsuit-path.html
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the UiPath class action lawsuit must be filed with the court no later than November 6, 2023.
CASE ALLEGATIONS: UiPath is a global provider of robotic process automation software. On April 21, 2021, UiPath conducted its initial public offering (“IPO”), selling over 27.5 million UiPath shares for gross proceeds of more than $1.5 billion.
The UiPath class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) UiPath had enacted a widespread discounting program prior to its IPO, which had the effect of temporarily boosting UiPath’s revenue and annualized recurring revenue (“ARR”) metrics, cannibalizing its future sales, eroding UiPath’s margins, and increasing the risk of client churn; (ii) UiPath’s actual total addressable market was not as large as portrayed by defendants, because many companies included in UiPath’s market survey did not need the type of high-cost, high-functionality automation products offered by UiPath; (iii) UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms; (iv) UiPath was losing customers due to the increased availability of low-code automation software offered by vendors, such as Microsoft’s Power Automate software, which were capable of addressing the majority of customer use cases at a fraction of the price of UiPath’s products and services; and (v) UiPath was suffering from a loss of channel sales due to strained relationships with UiPath’s partners as a result of increased competition between UiPath and these partners.
On September 7, 2021, UiPath announced financial results for the quarter ended July 31, 2021. Specifically, UiPath revealed an unexpected slowdown in UiPath’s revenues and reported ARR metrics. UiPath further revealed that it had engaged in substantial discounting of its products prior to the IPO and that UiPath was in the process of altering the structure of its contracts to include a “ramping” feature whereby customer contract commitments would start small and increase over time and thereby reduce the need for UiPath to offer widespread discounting as it had before. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 12%.
Then, on December 8, 2021, UiPath announced its financial results for the quarter ended October 31, 2021. UiPath revealed that UiPath’s growth had stalled further, disclosing that its ARR annual growth rate during the quarter had declined for the third quarter in a row to 58% and that its net new ARR remained subdued at 42% growth year-over-year, down substantially from the 55% growth reported in the first quarter 2022 earnings release. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 7% over a two-day period.
Finally, on March 30, 2022, UiPath announced financial results for the quarter and year ended January 31, 2022. UiPath disclosed that it had earned revenues of just $289.7 million during the quarter, representing year-over-year growth of 39%. UiPath further revealed deeply disappointing ARR and revenue guidance, revealing that the declining growth trends adversely impacting UiPath were expected to continue. UiPath also announced the abrupt departure of Thomas Hansen, UiPath’s Chief Revenue Officer, who was responsible for developing relationships with UiPath’s current and prospective customers, expanding UiPath’s partnership network, and fostering UiPath’s developer community. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 25%.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. You can view a copy of the complaint by clicking here.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased UiPath common stock during the Class Period to seek appointment as lead plaintiff in the UiPath class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the UiPath class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the UiPath class action lawsuit. An investor’s ability to share in any potential future recovery of the UiPath class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
https://www.rgrdlaw.com/services-litigation-securities-fraud.html
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