Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Snowflake Inc.(“Snowflake” or the “Company”) (NYSE: SNOW) Class A common stock between September 16, 2020 and March 2, 2022, inclusive (the “Class Period”). Snowflake investors have until April 29, 2024 to file a lead plaintiff motion.
If you suffered a loss on your Snowflake investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Snowflake-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On March 2, 2022, after the market closed, Snowflake released its fourth quarter and full year 2022 financial results, revealing that the Company’s customers were consuming at a reduced rate due to “platform enhancements . . . which lowered credit consumption.” Additionally, Snowflake lowered expected sales growth to between 65% and 67% for fiscal 2023, representing a significant decline given that Snowflake’s revenue growth had more than doubled year-over-year in the previous six quarters.
On this news, Snowflake’s stock price fell $40.67, or 15.4%, to close at $224.02 per share on March 3, 2022, thereby injuring investors. Snowflake’s stock price continued to fall another 14.5% over the next few consecutive trading days, to close at $191.61 on March 8, 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 Snowflake had systematically oversold capacity to customers which created a misleading appearance of the demand for Snowflake’s products and services; (2) that Snowflake had provided significant discounts to its customers prior to the IPO that temporarily boosted sales but would not be sustainable after the IPO and/or necessitate platform efficiency adjustments that negatively impacted client consumption and Snowflake’s revenue and profit margins; (3) that, as a result, Snowflake’s customers were poised to roll over a material amount of unused credits (and thereby cannibalize future sales) at the end of their contracts’ terms or to refuse to renew their contracts at prior consumption levels or at all; (4) that, as a result, Snowflake’s product revenue and remaining performance obligations had been artificially inflated leading up to and during the Class Period; and (5) 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 Snowflake securities during the Class Period, you may move the Court no later than April 29, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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