SAN DIEGO, Feb. 29, 2024 /PRNewswire/ -- DiCello Levitt LLP announces that purchasers or acquirers of Palo Alto Networks, Inc. ("Palo Alto Networks" or the "Company") (NASDAQ: PANW) common stock between August 18, 2023 through February 20, 2024, inclusive (the "Class Period"), have until April 26, 2024 to seek appointment as lead plaintiff of the Palo Alto Networks class action lawsuit. The lawsuit charges Palo Alto Networks and certain of its senior executive officers with violations of the Securities Exchange Act of 1934.
If you purchased shares of Palo Alto Networks common stock between August 18, 2023 through February 20, 2024, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/palo-alto-networks/
You can also contact DiCello Levitt partner Brian O'Mara by calling (888) 287-9005 or at investors@dicellolevitt.com.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Allegations
The Palo Alto Networks lawsuit alleges that during the Class Period, Defendants misrepresented customer demand for the Company's products and overstated the impact of certain business initiatives. Contrary to Defendants' statements during the Class Period: (i) Palo Alto Network's consolidation and so-called "platformization" initiatives were not driving increased market share to a significant degree; (ii) the Company needed to increase platformization and free product offerings to entice customers to adopt more of their platforms; (iii) the Company's high growth in billings was not sustainable; (iv) new artificial intelligence ("AI") offerings were not facilitating greater platformization and consolidation; and (v) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about customer demand, billings, and platformization, as well as related financial results, growth, and prospects.
The truth was revealed on February 20, 2024, when the Company slashed its third quarter and full-year billings and revenue guidance, reporting expected billings growth between 2%-4% and total revenue growth between 13%-15%. Defendant Nikesh Arora, the Company's chief executive officer ("CEO"), explained that "our guidance is a consequence of us driving a shift in our strategy in wanting to accelerate both our platformization and consolidation and activating our AI leadership." CEO Arora also revealed that several large deals with the U.S. federal government did not close, resulting in "a significant shortfall in our U.S. federal government business" that is expected to continue into the third and fourth quarters of 2024. On this news, the price of Palo Alto Networks common stock declined by $104.12 per share, or approximately 28%, to close at $261.97 on February 21, 2024.
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SOURCE DiCello Levitt LLP
