According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- UiPath had enacted a widespread discounting program prior to its initial public offering (“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;
- 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;
- UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms;
- 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
- 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.
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.
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