NEW YORK, NY / ACCESSWIRE / July 4, 2024 / Leading securities law firm Bleichmar Fonti & Auld LLP announces that it has filed a lawsuit against UiPath, Inc. (“UiPath” or the “Company”) (NYSE:PATH) and certain of the Company’s officers.
Investors have until August 19, 2024 to ask the court to direct the case. The lawsuit 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 “Claim Period”). The case is pending in the U.S. District Court for the Southern District of New York and is titled Zack Steiner v. UiPath, Inc.No. 1:24-cv-4702.
If you have suffered losses on your UiPath investment, please send your information to https://www.bfalaw.com/cases/uipath-inc-investigation.
What is the lawsuit about?
The lawsuit alleges that throughout the Class Period, defendants made factually false and misleading statements about the success of UiPath’s turnaround strategy. For example, defendants claimed that the company “is executing on this strategy and we are seeing the results in terms of business and customer quality,” they claimed that “our strategic investments in innovation and our go-to-market ecosystem position us well for continued momentum,” and that “since the turnaround strategy was implemented, there is no doubt that there has been better execution.”
These statements were allegedly materially false and misleading. In fact, UiPath’s turnaround strategy had failed. Wasted investments and inconsistent execution plagued the company’s revised go-to-market strategy. In addition, UiPath’s AI-powered business automation platform caused customer “confusion” and failed to scale sufficiently. As a result, UiPath had significant difficulty winning and/or extending large multi-year contracts.
On May 29, 2024, UiPath announced the sudden departure of CEO Robert Enslin. On the same day, UiPath reported disappointing financial results for Q1 2025 and significantly lowered its fiscal 2025 revenue forecast by 10%, or $150 million. The company attributed the poor results and forecasts 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 “caused a little confusion among our customers.” UiPath also described how the “investments we made to re-accelerate growth have fallen short of our expectations (and) made us less flexible in responding to customer needs” while we experienced “contract execution challenges on large deals.”
This news caused UiPath’s stock price to fall by $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, causing significant harm to investors.
Click here if you have suffered losses: https://www.bfalaw.com/cases/uipath-inc-investigation.
A copy of the complaint can be found Here.
What can you do?
If you have 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 basis. There are no costs for youShareholders will not be responsible for any court or litigation costs. The Company will seek court approval for any fees and costs. Send your information:
https://www.bfalaw.com/cases/uipath-inc-investigation
Or contact us at:
Ross Shikowitz
(email protected)
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in class actions and shareholder litigation. It was named a Top 5 Plaintiffs Firm for 2023 by ISS SCAS and its lawyers have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Recent notable successes include BFA recovering over $900 million in value from the board of Tesla, Inc. (subject to court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, visit https://www.bfalaw.com.
https://www.bfalaw.com/cases/uipath-inc-investigation
Attorney advertising. Past results do not guarantee future results.
SOURCE: Bleichmar Fonti & Auld LLP
