NEW YORK, July 06, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces it has filed a lawsuit against UiPath, Inc. (“UiPath” or the “Company”) (NYSE:PATH) and certain of the Company’s senior executives.
Investors have until August 19, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in UiPath securities between December 1, 2023 and the close of trading on May 29, 2024 inclusive (the “Class Period”). The case is pending in the U.S. District Court for the Southern District of New York and is captioned Zack Steiner v. UiPath, Inc., No. 1:24-cv-4702.
If you suffered losses on your UiPath investment, you are encouraged to submit your information at https://www.bfalaw.com/cases/uipath-inc-investigation.
What is the Lawsuit About?
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements concerning the success of UiPath’s turnaround strategy. For instance, defendants represented that the Company was “executing against that strategy, and we’re seeing [the] results in the deal quality and the customer quality,” asserted that “our strategic investments in innovations and our go-to-market ecosystem positions us well for continued momentum,” and that “there’s no doubt there’s [been] better execution” since the implementation of the turnaround strategy.
These statements were allegedly materially false and misleading. In truth, UiPath’s turnaround strategy had failed. Fruitless investments and inconsistent execution plagued the Company’s overhauled go-to-market strategy. Additionally, UiPath’s AI-powered Business Automation Platform caused “confusion” among customers and was not able to be adequately scaled. As a result, UiPath experienced significant difficulties closing and/or expanding large multiyear deals.
On May 29, 2024, UiPath announced the sudden departure of CEO Robert Enslin. On the same day, UiPath announced disappointing 1Q 25 financial results and significantly cut its FY 25 revenue guidance by 10%, or $150 million. The Company attributed the poor results and guidance to several factors related to its failed turnaround strategy, including an inadequate “execution strategy to scale” the Company’s AI-powered growth products “to reach their full potential,” and that AI had “create[ed] a little bit of confusion with our customers.” Ui Path also described how the “investments we have made to reaccelerate growth have fallen short of our expectations, [and] made us less agile in responding to customer needs” while experiencing “contract execution challenges on large deals.”
This news caused the price of UiPath stock to decline $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, resulting in significant harm to investors.
Click here if you suffered losses: https://www.bfalaw.com/cases/uipath-inc-investigation.
A copy of the lawsuit can be found here.
What Can You Do?
If you invested in UiPath, Inc. you have rights and are encouraged to submit your information to speak with an attorney.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses. Submit your information:
https://www.bfalaw.com/cases/uipath-inc-investigation
Or contact us at:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases/uipath-inc-investigation
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