GitLab investors alerted of class action lawsuit deadline on November 4, 2024
- Levi & Korsinsky, LLP has filed a class action lawsuit against GitLab Inc. for alleged securities fraud affecting investors from June 6, 2023, to March 4, 2024.
- The lawsuit claims GitLab misled investors about its AI development capabilities, leading to a significant drop in stock price after disappointing financial guidance was released.
- Investors have until November 4, 2024, to request to be appointed as lead plaintiff, with no costs or obligations to participate.
On September 16, 2024, Levi & Korsinsky, LLP announced a class action securities lawsuit against GitLab Inc. for alleged securities fraud affecting investors between June 6, 2023, and March 4, 2024. The lawsuit claims that GitLab misled investors by providing overly optimistic statements while concealing significant issues regarding its ability to develop AI features for its DevSecOps platform. This misrepresentation led to a dramatic decline in GitLab's stock price following a press release on March 4, 2024, which revealed disappointing financial guidance for 2025. The press release indicated that GitLab anticipated a non-GAAP operating loss of $12-$13 million for Q1 2025 and a revenue forecast of $5-$10 million for the full year. This announcement caused the stock price to plummet from $74.47 to $58.84 in just one day, representing a 21% drop. Investors reacted negatively to the news, reflecting their concerns over the company's future performance and growth potential. The lawsuit aims to recover losses for investors who were adversely affected by these alleged fraudulent activities. Those who suffered losses during the specified timeframe have until November 4, 2024, to request appointment as lead plaintiff in the case. Participation in the lawsuit does not require serving as a lead plaintiff, and there are no costs or obligations involved. Levi & Korsinsky has a strong track record in securities litigation, having secured significant recoveries for shareholders over the past two decades. The firm has consistently ranked among the top securities litigation firms in the United States, indicating its capability to handle high-stakes cases effectively.