New York, New York--(Newsfile Corp. - August 19, 2024) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against UiPath, Inc. ("UiPath" or "the Company") (NYSE: PATH) and certain of its officers.
Class Definition
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired UiPath securities between December 1, 2023, and May 29, 2024, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/PATH.
Case Details
According to the Complaint, UiPath is a New York, New York based business automation software company. Since its founding in 2005, the Company has provided robotic process automation ("RPA") tools to its public and private sector customers to automate repetitive business tasks typically performed by humans. With the evolution of artificial intelligence ("AI") technology in recent years, UiPath has sought to enhance its business automation offerings with AI-powered products that work in conjunction with its RPA tools.
On September 27, 2022, notes the Complaint, after a period of stagnant growth and declining demand for its RPA products, UiPath announced a turnaround strategy. The turnaround strategy included rebranding UiPath as an AI-powered Business Automation Platform and overhauling the Company's go-to-market sales strategy. The sales strategy overhaul included several facets such as:
(1) prioritizing selling UiPath's platform of products as opposed to allowing its customers to pick and choose single product offerings; and
(2) increasing sales resources dedicated to the Company's largest customers and focusing sales efforts on its customers' C-suites.
The Complaint alleges that UiPath misrepresented the success of its turnaround strategy. For instance, during the Class Period the Company stated that UiPath's Business Automation Platform "enables us to close larger, more strategic deals" and that its AI-powered products "set[] us apart from the competition." Regarding its overhauled go-to-market strategy, Defendants represented that the Company was "executing against that strategy, and we're seeing [the] results in the deal quality and the customer quality," asserted that "our strategic investments in innovations and our go-to-market ecosystem positions us well for continued momentum," and insisted that "there's no doubt there's [been] better execution" since the implementation of the turnaround strategy.
In truth, explains the Complaint, UiPath's turnaround strategy had failed. Fruitless investments and inconsistent execution plagued the Company's overhauled go-to-market strategy. Additionally, far from a competitive strength, UiPath's AI-powered Business Automation Platform caused "confusion" among customers and was not able to be adequately scaled. As a result, UiPath experienced significant difficulties closing and/or expanding large multiyear deals.
On May 29, 2024, notes the Complaint, UiPath announced the sudden departure of CEO Robert Enslin. On the same day, UiPath announced disappointing 1Q 25 financial results and significantly cut its FY 25 revenue guidance by 10%, or $150 million, to a range of $1.405 billion to $1.410 billion. UiPath attributed the poor results and guidance to several factors including "contract execution challenges on large deals," an inadequate "execution strategy to scale" the Company's AI-powered growth products "to reach their full potential," and that "investments we have made to reaccelerate growth have fallen short of our expectations, [and] made us less agile in responding to customer needs."
On this news, per the Complaint, the price of UiPath stock declined $6.23 per share, or more than 34%, from $18.30 per share on May 29, 2024, to $12.07 per share on May 30, 2024.
What's Next?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/PATH or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in UiPath you have until August 19, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller
332-239-2660 | info@bgandg.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214165
