HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages UiPath Inc. (PATH) Investors with $250k+ Losses to Contact Firm’s Attorneys, Securities Fraud Class Action Pending
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Sep 18, 2023, 6:10 PM ET
SAN FRANCISCO, CA / ACCESSWIRE / September 18, 2023 / Hagens Berman urges UiPath Inc. (NYSE:PATH) investors who suffered $250k or more in losses to submit your losses now.
UiPath Inc. (PATH) Securities Fraud Class Action:
The complaint alleges that UiPath made false and misleading statements and failed to disclose that it: (1) had enacted a widespread discounting program before its April 21, 2021 IPO, temporarily boosting its revenue and annualized recurring revenue ("ARR") metrics, cannibalizing future sales, eroding margins, and increasing the risk of client churn; (2) overstated its actual total addressable market ("TAM") because many companies included in UiPath's market survey did not need the type of high-cost, high-functionality automation products offered by UiPath; (3) was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM and other established software vendors that were building automation into their own platforms; and (4) was suffering from a loss of channel sales due to strained relationships with its partners as a result of increased competition between UiPath and its partners.
The truth emerged over a series of disclosures beginning on Sept. 7, 2021, when UiPath revealed an unexpected slowdown in revenues and ARR metrics and its discounting of products before the IPO. Then, on Dec. 8, 2021, UiPath revealed its growth further stalled and disclosed its third consecutive ARR decline. Finally, on Mar. 30, 2022, UiPath revealed deeply disappointing ARR and revenue guidance that indicated declining growth trends were expected to continue.
In response to each of these events, the price of UiPath shares significantly declined.
"We're focused on investors' losses and are investigating whether UiPath may have misled investors about known trends that would adversely affect the company's growth prospects," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in UiPath and have substantial losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding UiPath should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email PATH@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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