An investigation on behalf of current long term investors in Guidewire Software, Inc. (NYSE:GWRE) shares over possible breaches of fiduciary duty by certain officers and directors was announced.
San Diego, CA -- (SBWIRE) -- 11/03/2020 -- Certain directors of Guidewire Software, Inc. are under investigation concerning potential breaches of fiduciary duties.
Investors who are current long term investors in Guidewire Software, Inc. (NYSE: GWRE) shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm for investors in NYSE: GWRE stocks follows a lawsuit filed against Guidewire Software, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE: GWRE stocks, concerns whether certain Guidewire Software, Inc. directors are liable in connection with the allegations made in that lawsuit.
The plaintiff alleges that the Defendants represented to investors that Guidewire was well-positioned to capitalize on a shift in the P&C insurance industry away from on-premise software systems to software systems provided over the cloud. Defendants touted the "robust" demand that existed for Guidewire's cloud-based products and assured investors that customer demand was "enduring and broad-based across most or all segments of the market."
The plaintiff alleges that the defendants further touted the demand for Guidewire's cloud offering by reporting, at the end of each quarter, that cloud sales represented a substantial and growing percentage of the Company's overall sales. The Company also issued highly favorable revenue and Annual Recurring Revenue ("ARR") guidance, and assured investors that customer demand remained strong across the Company's entire product offering, including its legacy on-premise business.
More specifically, the plaintiff claims that between March 6, 2019 and March 4, 2020, the demand for Guidewire's cloud products was weak and the Company's transition to the cloud was not going well because Guidewire's cloud-based products needed to be significantly improved to meet customer needs and catch-up with rival systems, that Guidewire's failed transition to the cloud was damaging the Company's traditional on-premise business, as customers delayed purchasing decisions or declined to renew existing licenses, and that Guidewire's revenue guidance, including guidance principally based on significantly increasing demand for the Company's cloud-based products, was baseless and unattainable.
Those who purchased shares of Guidewire Software, Inc. (NYSE: GWRE) have certain options and should contact the Shareholders Foundation.
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