The Law Offices of Frank R. Cruz reminds investors of the upcoming November 6, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired UiPath Inc. (“UiPath” or the “Company”) (NYSE: PATH) common stock between April 21, 2021 and March 30, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On September 7, 2021, UiPath released its second quarter 2022 financial results, revealing a slowdown in the Company’s revenues and reported annualized renewal run-rate (“ARR”). The Company also revealed that its financial results provided to investors in connection with the Company’s Initial Public Offering had been boosted by previously undisclosed discounting, and that UiPath was shifting away from discounted multi-year contracts and moving to a “ramping” contact model. On this news, UiPath’s stock price fell $8.06, or 12.9%, to close at $54.40 per share on September 9, 2021, thereby injuring investors.
Then, on March 30, 2022, UiPath released disappointing revenue and ARR guidance for its fiscal year 2023, stating that the downward growth trajectory was expected to continue. On this news, UiPath’s stock price fell $7.45, or 25.7%, to close at $21.59 per share on March 31, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that UiPath had enacted a widespread discounting program prior to the IPO, which had the effect of temporarily boosting the Company’s revenue and ARR metrics, cannibalizing its future sales, eroding the Company’s margins, and increasing the risk of client churn; (2) 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; (3) that UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms; (4) that UiPath was losing customers due to the increased availability of lowcode 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; (5) 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 (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired UiPath common stock during the Class Period, you may move the Court no later than November 6, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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