TWERSKY LAW GROUP Notifies SentinelOne, Inc. (NYSE : S) Investors of Class Action
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 SentinelOne, Inc. (“SentinelOne” or “the Company) (NASDAQ: ATLX) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired SentinelOne securities from June 1, 2022, through June 1, 2023 (the “Class Period”). Investors who acquired SentinelOne 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 August 7, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased SentinelOne 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
On June 1, 2023, after the market closed, SentinelOne published a press release titled “SentinelOne Announces First Quarter Fiscal Year 2024 Financial Results.” Therein, the Company disclosed that “[a]s a result of a change in methodology and correction of historical inaccuracies, which we further describe in our letter to shareholders, we made a one-time adjustment to ARR of $27.0 million or approximately 5% of total ARR.” The Company also revised its fiscal year 2024 revenue guidance downward to a range of $590 million to $600 million from a range of $631 million to $640 million. In a shareholder letter published the same day, SentinelOne further explained that “we . . . discovered historical upsell and renewal recording inaccuracies relating to ARR on certain subscription and consumption contracts, which are now corrected” and that “[w]e are applying a comparable estimated adjustment to the remaining quarters in fiscal year 23, which we believe is a reasonable approximation of the impact in those periods.”
On this news, SentinelOne’s stock price fell $7.28 per share, or more than 35%, to close at $13.44 per share on June 2, 2023. 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 that: investors: (1) that the Company lacked effective internal controls over accounting and financial reporting; (2) that, as a result, the Company’s ARR was overstated; (3) that, as a result, the Company’s guidance was overstated; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
HISTORY OF SENTINELONE
SentinelOne, Inc. (NYSE: S) is a leading cybersecurity company known for its advanced endpoint protection solutions. The company was founded in 2013 by Almog Cohen, Tomer Weingarten, and Ehud Shamir, with the aim of revolutionizing the way organizations protect themselves against evolving cyber threats.
In 2014, SentinelOne introduced its flagship product, the SentinelOne Endpoint Protection Platform (EPP), which offered real-time, behavior-based detection and response capabilities. SentinelOne began to attract significant investment. In 2016, it raised $25 million in a Series B funding round led by Third Point Ventures. This was followed by a $70 million Series C funding round in 2017, led by Redpoint Ventures. Over the years, SentinelOne continued to secure substantial investments, allowing it to expand its operations and further enhance its product offerings. In 2020, SentinelOne acquired Scalyr, a leading provider of log management and analytics solutions, to strengthen its capabilities in cloud-native security and threat hunting. This acquisition expanded SentinelOne’s portfolio and allowed customers to gain deeper insights into their security postures.
On June 30, 2021, SentinelOne went public and started trading on the New York Stock Exchange (NYSE) under the ticker symbol “S.” The initial public offering (IPO) marked another significant milestone for the company, as it continued its growth trajectory and cemented its position as a prominent player in the cybersecurity industry.
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 SentinelOne 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 August 7, 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 expertise in handling securities fraud class actions and shareholder derivative suits, has 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 SentinelOne 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.
ABOUT US
For more information as well as to join this case please contact Atara Twersky, Esq. at atara@twerskylawgroup.com. Atara is Principal at Twersky Law Group and of counsel at AF&T Law Firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries, listen to Atara ’s Pension and Investments Podcast with notable guests in the pension fund Industry that discusses various matters relating to investment portfolios. For more information on Atara and her legal work pertaining to shareholder protection click here.