SAN DIEGO, July 02, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP notifies investors of UiPath (NYSE: PATH) that a securities class action lawsuit has been filed. The lawsuit seeks to recover losses on behalf of investors who acquired securities within the class period. Investors who acquired securities during the class period, December 1, 2023 and May 29, 2024, inclusive (the “Class Period”) are encouraged to review the following information.
If you would like more information and want to join the class action, please click or copy and paste the following link:
https://www.johnsonfistel.com/investigations/uipath
There is no cost or obligation to you.
Complaint Allegations: The complaint asserts that, during the Class Period, the defendants issued materially false and misleading statements regarding the success of UiPath's turnaround strategy. Specifically, the defendants stated that the Company was "executing against that strategy, and we're seeing [the] results in the deal quality and the customer quality," claimed that "our strategic investments in innovations and our go-to-market ecosystem positions us well for continued momentum," and assured that "there's no doubt there's [been] better execution" following the implementation of the turnaround strategy.
These assertions are alleged to be materially false and misleading. Contrary to these statements, UiPath's turnaround strategy was unsuccessful. The Company's revamped go-to-market strategy was hampered by unproductive investments and inconsistent execution. Furthermore, UiPath's AI-powered Business Automation Platform led to "confusion" among customers and was not scalable. Consequently, UiPath encountered significant challenges in closing and/or expanding large multiyear deals.
On May 29, 2024, UiPath announced the sudden departure of CEO Robert Enslin. Concurrently, the Company revealed disappointing financial results for the first quarter of fiscal year 2025 and significantly reduced its revenue guidance for fiscal year 2025 by 10%, or $150 million. The Company attributed these poor results and revised guidance to several factors related to its failed turnaround strategy. These factors included an inadequate "execution strategy to scale" the Company's AI-powered growth products "to reach their full potential," and the AI's contribution to "creat[ing] a little bit of confusion with our customers." UiPath further explained that 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 also facing "contract execution challenges on large deals."
In light of these developments, the complaint contends that the defendants' statements during the Class Period were materially false and misleading, leading to significant detrimental effects on the Company and its stakeholders.
What can Investors Do: Shareholders who incurred losses during the class period, have until August 19, 2024, to move the court to become a lead plaintiff in this action. A lead plaintiff will act on behalf of all other class members in directing the class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor's ability to share any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
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James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471
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