SAN DIEGO, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons who purchased or otherwise acquired Palo Alto Networks, Inc. (NASDAQ:PANW) common stock between August 18, 2023 and February 20, 2024. Palo Alto Networks is a multinational cybersecurity company that offers an enterprise cybersecurity platform for network security, cloud security, and various cloud-delivered security.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: According to the complaint, during the class period, defendants failed to disclose that: (1) the Company’s consolidation and platformization initiatives were not driving increased market share to a significant degree; (2) the Company would need to ramp up platformization and free product offerings to entice customers to adopt more of their platforms; (3) the Company’s high growth in billings was not sustainable; and (4) new AI offerings were not facilitating greater platformization and consolidation.
On February 20, 2024, Palo Alto announced its financial results for the second quarter of 2024 and lowered its third quarter and full-year billings and revenue guidance, with expected billings growth between 2-4% and total revenue growth between 13-15%. In an earnings call on the same day, defendant Arora explained that “our guidance is a consequence of us driving a shift in our strategy in wanting to accelerate both our platformization and consolidation and activating our AI leadership.” Defendant Arora also revealed that U.S. federal government deals for several large projects did not close and resulted in “a significant shortfall in our U.S. federal government business” that is expected to continue into the third and fourth quarters of 2024. Defendant Arora further claimed, “[t]he situation started off towards the end of Q1 were worsened in Q2.” On this news, the price of Palo Alto Networks common stock declined by $104.12 per share, or approximately 28%, from $366.09 per share on February 20, 2024 to close at $261.97 on February 21, 2024.
What Now: You may be eligible to participate in the class action against Palo Alto Networks, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by April 26, 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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