Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against UiPath, Inc. (“UiPath” or “the Company”) (NASDAQ: PATH) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired AeroVironment securities from April 18, 2021 through March 30, 2022 (the “Class Period”). Investors who acquired UiPath securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is November 6, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased UiPath securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST UIPATH, INC.
On April 21, 2021, UiPath conducted its initial public offering (IPO), selling over 27.5 million UiPath shares for gross proceeds of more than $1.5 billion. The UiPath class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) UiPath had enacted a widespread discounting program prior to its IPO, which had the effect of temporarily boosting UiPaths revenue and annualized recurring revenue (ARR) metrics, cannibalizing its future sales, eroding UiPaths margins, and increasing the risk of client churn; (ii) UiPaths actual total addressable market was not as large as portrayed by defendants, because many companies included in UiPaths market survey did not need the type of high-cost, high-functionality automation products offered by UiPath; (iii) UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms; (iv) UiPath was losing customers due to the increased availability of low-code automation software offered by vendors, such as Microsofts Power Automate software, which were capable of addressing the majority of customer use cases at a fraction of the price of UiPaths products and services; and (v) UiPath was suffering from a loss of channel sales due to strained relationships with UiPaths partners as a result of increased competition between UiPath and these partners. On September 7, 2021, UiPath announced financial results for the quarter ended July 31, 2021. Specifically, UiPath revealed an unexpected slowdown in UiPaths revenues and reported ARR metrics.
UiPath further revealed that it had engaged in substantial discounting of its products prior to the IPO and that UiPath was in the process of altering the structure of its contracts to include a ramping feature whereby customer contract commitments would start small and increase over time and thereby reduce the need for UiPath to offer widespread discounting as it had before. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 12%. Then, on December 8, 2021, UiPath announced its financial results for the quarter ended October 31, 2021. UiPath revealed that UiPaths growth had stalled further, disclosing that its ARR annual growth rate during the quarter had declined for the third quarter in a row to 58% and that its net new ARR remained subdued at 42% growth year-over-year, down substantially from the 55% growth reported in the first quarter 2022 earnings release. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 7% over a two-day period. Finally, on March 30, 2022, UiPath announced financial results for the quarter and year ended January 31, 2022. UiPath disclosed that it had earned revenues of just $289.7 million during the quarter, representing year-over-year growth of 39%. UiPath further revealed deeply disappointing ARR and revenue guidance, revealing that the declining growth trends adversely impacting UiPath were expected to continue. UiPath also announced the abrupt departure of Thomas Hansen, UiPaths Chief Revenue Officer, who was responsible for developing relationships with UiPaths current and prospective customers, expanding UiPaths partnership network, and fostering UiPaths developer community. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 25%.
WHAT DOES UIPATH DO?
- UiPath Inc. is a software company that specializes in robotic process automation (RPA) and artificial intelligence (AI). RPA is a technology that allows organizations to automate repetitive, rule-based tasks by using software robots, often referred to as “bots.” These bots can mimic human actions within digital systems, such as logging into applications, copying and pasting data, and performing data entry tasks.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in UiPath during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is November 6, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against UiPath are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
