Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Feb. 27, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Palo Alto Networks, Inc. (NASDAQ: PANW) investors that a lawsuit was filed on behalf of investors that purchased Palo Alto securities between August 18, 2023 and February 20, 2024, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
After the markets closed on February 20, 2024, Palo Alto Networks released its financial figures for the second quarter of 2024 and revised downwards its billings and revenue forecasts for the third quarter and the entire year. During the earnings call on the same evening, the company's executives attributed the revised guidance to a strategic shift aimed at speeding up the integration and expansion of their platforms and harnessing their leadership in artificial intelligence. They also disclosed that they failed to secure expected deals with the U.S. federal government, leading to a significant drop in their U.S. federal government business, a trend anticipated to persist into the third and fourth quarters of 2024.
Following these announcements, the share price of Palo Alto Networks, Inc. plummeted by $104.12, or roughly 28%, on February 21, 2024.
The lawsuit contends that during the Class Period, the defendants consistently made misleading statements and omitted crucial information. Specifically, they failed to acknowledge that: (1) the company's efforts in consolidation and platform integration were not significantly boosting market share; (2) to attract customers to their platforms, there was a necessity to increase platform integration and offer free products; (3) the company's rapid billing growth was unsustainable; (4) the new AI products were not promoting greater platform integration and consolidation; and (5) therefore, the defendants did not have a solid basis for their optimistic statements regarding customer demand, billings, and platform integration, as well as their financial outcomes, growth, and future projections.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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