Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, April 15, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Snowflake Inc. (“Snowflake” or the “Company”) (NYSE: SNOW investors that a lawsuit was filed on behalf of investors that purchased Snowflake securities between September 16, 2020 and March 2, 2022 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 market hours on March 2, 2022, Snowflake reported its financial outcomes for the fourth quarter and the entire year of 2022, revealing that customer usage had decreased due to "platform enhancements" that reduced credit consumption. Additionally, Snowflake adjusted its expected revenue growth for fiscal 2023 to between 65% and 67%, a marked decrease considering the company's revenue had doubled year-over-year in the previous six quarters.
Following these announcements, Snowflake's share price dropped by $40.67, or 15.4%, ending the day at $224.02 on March 3, 2022. This downturn hurt investors, and the decline continued over the following trading days, with the stock price decreasing by another 14.5% to close at $191.61 on March 8, 2022, causing further investor losses.
The lawsuit filed regarding this case asserts that the defendants issued materially false and/or misleading statements and failed to disclose critical negative details about Snowflake's business, operational, and financial prospects during the class period. Specifically, the suit claims that the defendants concealed: (1) Snowflake's overselling of capacity to customers, falsely inflating demand for its products and services; (2) the company offering significant discounts pre-IPO to temporarily boost sales, which would not sustain post-IPO and necessitated platform efficiency changes adversely affecting customer usage and Snowflake's revenue and profit margins; (3) the likelihood of customers not using their accumulated credits fully, impacting future sales, or not renewing contracts at previous levels or at all; (4) the artificial inflation of Snowflake's product revenue and remaining performance obligations prior to and during the class period; and (5) as a result, the defendants' optimistic statements about the company's business, operations, and prospects were materially misleading and/or lacked a reasonable foundation.
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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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