SAN DIEGO, Sept. 07, 2023 (GLOBE NEWSWIRE) -- 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, April 21, 2021 and March 30, 2022, 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: According to the lawsuit, defendants failed to disclose: (a) that UiPath’s “ramping” contract model and defendants’ directions to investors to focus on the bespoke ARR metric created a materially misleading impression of client demand for the Company’s products and its revenue and ARR growth metrics, as the lower initial contract commitment induced certain customers to sign up with the Company who would not pay for larger commitments as the contracts ramped in later time periods; (b) that part of the motivation for UiPath’s “ramping” contract model was the Company’s inability to sign up customers for longer-term engagements without substantial discounting; (c) that UiPath’s actual total addressable market was not as large as portrayed by defendants, because many companies included in the market survey did not need the type of high-cost, high-functionality automation products offered by the Company; (d) that UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms; (e) that UiPath was losing customers due to the increased availability of low-code automation software offered by vendors, such as Microsoft’s Power Automate software, which were capable of addressing the majority of customer use cases at a fraction of the price of UiPath’s products and services; (f) that UiPath was suffering from a loss of channel sales due to strained relationships with the Company’s partners as a result of increased competition between UiPath and these partners; and (g) that, as a result of (a)-(f) above, defendants’ statements during the class period regarding the Company’s business, operations, and key financial metrics such as revenues and ARR were materially false and misleading.
What can Investors Do: Shareholders who incurred losses during the class period, have until November 6, 2023, 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.
Johnson Fistel, LLP is a shareholder rights law firm representing individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information, visit their website http://www.johnsonfistel.com.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
Investor Relations
jimb@johnsonfistel.com
or
Frank Johnson, 619-309-4405
fjohnson@johnsonfistel.com
