Lawsuit Filed Against UiPath Over Alleged Misleading Statements
- Bleichmar Fonti & Auld LLP has initiated legal proceedings against UiPath, Inc. for alleged securities fraud.
- The lawsuit adds to the scrutiny facing UiPath as it navigates the complexities of financial regulations.
- The outcome could significantly impact stakeholder trust and stock performance of the company.
NEW YORK, July 27, 2024 (GLOBE NEWSWIRE) – Bleichmar Fonti & Auld LLP, a prominent securities law firm, has initiated a lawsuit against UiPath, Inc. (NYSE: PATH) and several of its senior executives. Investors who have incurred losses from their investments in UiPath are urged to submit their information by August 19, 2024, to potentially lead the case. The lawsuit is currently pending in the U.S. District Court for the Southern District of New York, under the title Zack Steiner v. UiPath, Inc. The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, covering a class period from December 1, 2023, to May 29, 2024. It claims that the defendants made materially false and misleading statements regarding the effectiveness of UiPath’s turnaround strategy, asserting that the company was successfully executing its plans and seeing positive results in deal and customer quality. However, the lawsuit contends that UiPath faced significant challenges in closing and expanding large multiyear deals. This was highlighted by the company’s disappointing first-quarter financial results for FY 25, where it cut its revenue guidance by 10%, or $150 million, citing failures in its turnaround strategy and execution issues related to its AI-powered growth products. Investors affected by these developments are encouraged to reach out for legal consultation, as they may have rights to seek redress for their losses.