NYSE:PATH Investor Notice: Lawsuit Filed Against UiPath Inc. over Alleged Securities Laws Violations

A lawsuit was filed on behalf of investors in UiPath Inc. (NYSE:PATH) shares over alleged securities laws violations.

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San Diego, CA -- (SBWire) -- 09/20/2023 --The Shareholders Foundation announced that an investor, who purchased shares of UiPath Inc. (NYSE: PATH), filed a lawsuit over alleged violations of Federal Securities Laws by UiPath Inc.

Investors who purchased shares of UiPath Inc. (NYSE: PATH) have certain options and for certain investors are short and strict deadlines running. Deadline: November 6, 2023. NYSE: PATH investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

New York based UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. On April 21, 2021, UiPath conducted its initial public offering ("IPO"), selling over 27.5 million UiPath shares for gross proceeds of more than $1.5 billion.

On September 7, 2021, UiPath announced financial results for the quarter ended July 31, 2021. Specifically, UiPath revealed an unexpected slowdown in UiPath's revenues and reported ARR metrics. UiPath further revealed that it had engaged in substantial discounting of its products prior to the IPO and that UiPath was in the process of altering the structure of its contracts to include a "ramping" feature whereby customer contract commitments would start small and increase over time and thereby reduce the need for UiPath to offer widespread discounting as it had before. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 12%.

Then, on December 8, 2021, UiPath Inc. announced its financial results for the quarter ended October 31, 2021. UiPath revealed that UiPath's growth had stalled further, disclosing that its ARR annual growth rate during the quarter had declined for the third quarter in a row to 58% and that its net new ARR remained subdued at 42% growth year-over-year, down substantially from the 55% growth reported in the first quarter 2022 earnings release.

Then on March 30, 2022, UiPath Inc. announced financial results for the quarter and year ended January 31, 2022.

However, UiPath Inc. also disclosed that it had earned revenues of just $289.7 million during the quarter, representing year-over-year growth of 39%. UiPath Inc. further revealed deeply disappointing ARR and revenue guidance, revealing that the declining growth trends adversely impacting UiPath were expected to continue. UiPath Inc. also announced the abrupt departure of Thomas Hansen, UiPath's Chief Revenue Officer, who was responsible for developing relationships with UiPath's current and prospective customers, expanding UiPath's partnership network, and fostering UiPath's developer community. Shares of UiPath Inc. (NYSE: PATH) declined from $88.62 per share on May 24, 2021, to as low as $20.53 per share on March 31, 2022.

The plaintiff claims that between April 21, 2021 and March 30, 2022, the defendants made false and/or misleading statements and/or failed to disclose that UiPath had enacted a widespread discounting program prior to its IPO, which had the effect of temporarily boosting UiPath's revenue and annualized recurring revenue ("ARR") metrics, cannibalizing its future sales, eroding UiPath's margins, and increasing the risk of client churn, that UiPath's actual total addressable market was not as large as portrayed by defendants, because many companies included in UiPath's market survey did not need the type of high-cost, high-functionality automation products offered by UiPath, that UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms, that UiPath was losing customers due to the increased availability of low-code automation software offered by vendors, such as Microsoft's Power Automate software, which were capable of addressing the majority of customer use cases at a fraction of the price of UiPath's products and services, and that UiPath was suffering from a loss of channel sales due to strained relationships with UiPath's partners as a result of increased competition between UiPath and these partners.

Those who purchased shares of UiPath Inc. (NYSE: PATH) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Media Relations Contact

Michael Daniels
Shareholders Foundation, Inc.
1-858-779-1554
http://www.ShareholdersFoundation.com

View this press release online at: http://rwire.com/1378250