SAN DIEGO, June 27, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a class action lawsuit has been filed by a shareholder on behalf of individuals and entities who purchased or otherwise acquired securities of UiPath, Inc. (NYSE: PATH) between December 1, 2023 and May 29, 2024. UiPath is a business automation software company.
For more information, submit a form, email Attorney Aaron Dumas, Jr., or call us at (800) 350-6003.
The accusations: Robbins LLP is investigating allegations that UiPath, Inc. (PATH) misled investors about its business prospects
According to the complaint, during the class action litigation, defendants touted the success of UiPath’s turnaround strategy. Specifically, defendants claimed that UiPath’s Business Automation Platform “enables us to close larger, more strategic deals” and that its AI-powered products “set us apart from the competition.” However, the plaintiff alleges that UiPath’s turnaround strategy failed. Fruitless investments and inconsistent execution plagued the company’s revised go-to-market strategy. Furthermore, far from being a competitive strength, UiPath’s AI-powered Business Automation Platform suffered from the company’s inability to adequately scale its AI-powered tools, causing “confusion” among customers. As a result, UiPath had significant difficulty closing and/or scaling large multi-year deals.
The lawsuit alleges that on May 29, 2024, UiPath announced the sudden resignation of defendant Enslin as CEO and the reappointment of defendant Dines as CEO. On the same day, UiPath announced disappointing financial results for Q1 2025 and lowered its fiscal 2025 revenue guidance by 10%, or $150 million, to a range of $1.405 billion to $1.410 billion. UiPath attributed the poor results and guidance to “contract execution challenges on large deals,” an inadequate “execution strategy to scale” the company’s AI-powered growth products “to reach their full potential,” and that “the investments we made to re-accelerate growth have fallen short of our expectations (and) have made us less flexible in responding to customer needs.” On this news, UiPath stock price fell $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.
What now: You may be eligible to participate in the class action lawsuit against UiPath, Inc. Shareholders who wish to serve as lead plaintiff for the class action must file their motions with the Court by August 19, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for compensation. If you choose not to take action, you may remain an absent class member. For more information, click here Here.
Representation is on a contingency basis. Shareholders pay neither fees nor expenses.
About Robbins LLP: Some law firms issuing press releases on this matter do not litigate securities class actions; Robbins LLP does. As a recognized leader in shareholder litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures and hold corporate executives accountable for wrongdoing since 2002. Since our founding, we have recovered more than $1 billion for shareholders.
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