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UiPath, Inc. Class Action Lawsuit — PATH

Published in
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12 min read
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Sep 08

A class action lawsuit has been filed seeking to represent purchasers of UiPath, Inc. (NYSE: PATH) common stock between April 21, 2021 and March 30, 2022, inclusive (the “Class Period”). Captioned Gera v. UiPath, Inc., №23-cv-07908 (S.D.N.Y.), the UiPath class action lawsuit charges UiPath and certain of its top executive officers with violations of the Securities Exchange Act of 1934.

If you suffered losses in UiPath stock and wish to serve as lead plaintiff in the class action against UiPath, please provide your information below. You can also ​contact UiPath Stock Loss Lawyer Timothy L. Miles by calling 855/846–6529 or via e-mail at [email protected]. Lead plaintiff motions for the UiPath lawsuit must be filed with the court no later than November 6, 2023.

UiPath is a global provider of robotic process automation software. 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.

The UiPath class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) 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; (iii) UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms; (iv) 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 (v) 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.

​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 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. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 7% over a two-day period.

Finally, on March 30, 2022, UiPath announced financial results for the quarter and year ended January 31, 2022. UiPath disclosed that it had earned revenues of just $289.7 million during the quarter, representing year-over-year growth of 39%. UiPath further revealed deeply disappointing ARR and revenue guidance, revealing that the declining growth trends adversely impacting UiPath were expected to continue. UiPath 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. The UiPath class action lawsuit alleges that on this news, the price of UiPath common stock declined more than 25%.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in UiPath stock to seek appointment as lead plaintiff in the UiPath class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.

​A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in UiPath stock and have further questions, contact UiPath stock loss Lawyer Timothy L. Miles today who will fight to recover your damages in a UiPath lawsuit if you suffered losses in UiPath stock.

Yes, courts in the U.S. have consistently recognized that non-U.S. investors, many of which have substantial holdings, are adequate lead plaintiffs and have the same right to move for lead plaintiffs as U.S. investors. Thus, if a non-U.S. investor suffered losses in UiPath stock, they may move the Court to be appointed lead plaintiff in the UiPath stock class action lawsuit.

Serving as a Lead Plaintiff in the UiPath stock lawsuit has several advantages and important benefits including:

Thus, there are numerous benefits to serving as lead plaintiff in a class action against UiPath stock if you suffered losses in UiPath stock.

No. Even if you suffered losses in UiPath stock, if you purchased or sold securities outside of the Class period, you will not be able to participate in the UiPath stock class action lawsuit.

​No, but they may be entitled to recover their reasonable expenses incurred with are directly related to representing the class in the class action against UiPath. Under the Private Securities Litigation Reform Act of 1995, a Lead Plaintiff is only entitled to his or her pro rata share of any recovery and does not receive any additional money for serving as a representative party on behalf of the class. However, a court, in its discretion, may approve an award of “reasonable costs and expenses (including lost wages)” to a Lead Plaintiff which directly relates to the representation of the class in the UiPath lawsuit on behalf of investors who suffered losses in UiPath stock.

​Yes, unless you have been a lead plaintiff in more than five securities class actions during any three-year period which is expressly prohibited by the securities laws. Otherwise, if you suffered losses in UiPath stock, you may move to be appointed lead plaintiff in the UiPath Lawsuit.

​Yes, at its discretion the Court may appoint a person, entity, or group of persons and/or entities as Lead Plaintiffs to oversee the UiPath class action lawsuit.

In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives. The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period ends when the truth is revealed to the investing public through a corrective disclosure.

In order to be a part of the class in the UiPath class action lawsuit, you must have suffered losses in UiPath stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the class action against UiPath.

​​​​A UiPath stock loss Lawyer is well-versed in the complex laws that govern the securities industry and litigation and focuses on representing individual investors or funds who have been the victims of fraud or who have disputes with investment professionals. Ordinary individual investors, including civil servants, teachers, nurses, and retirees, may need a securities lawyer. In most cases, if they have lost money due to mistakes, incompetence, or fraud by an investment professional. While FINRA, the SEC, and state securities regulators serve a vital role in protecting investors, they simply have too many individuals, firms, and market transactions to monitor to discover every act of fraud or negligence. Individual investors should consult with a securities lawyer if they have lost money due to fraud or stockbroker misconduct. Contact a UiPath stock loss Lawyer today if you suffered losses in UiPath ​stock about the UiPath class action lawsuit who will fight to recover your suffered losses in UiPath stock.

​If you purchased securities during the Class Period and suffered losses in UiPath stock, then you are most likely a member of the class in the UiPath class action lawsuit and may participate in the lawsuit against UiPath since you suffered losses in UiPath stock.

​​In a securities fraud class action lawsuit, the plaintiff’s damages are typically calculated as out-of-pocket losses. These losses are expressed as the difference between the price at which the stock was sold and the price at which the stock would have been sold absent any artificial inflation caused by the defendant’s alleged misrepresentations or omissions which is why you suffered losses in UiPath stock. Contact a UiPath stock loss lawyer who can explain your losses in greater detail if you suffered losses in UiPath stock.

​​If you purchased shares during the class period and suffered losses in suffered losses in UiPath stock, then you will automatically be a class member and entitled to share in any potential settlement or recovery. Your ability to be a class member and recover your losses is not dependent on you serving as a lead plaintiff. The sixty-day deadline applies only to those shareholders seeking to be a lead plaintiff in the UiPath stock class action lawsuit.

​If there is a settlement in the UiPath ​lawsuit, you should receive a court ordered Notice through the mail which will provide a date when the court will hold a final hearing to decide if it will approve the settlement. If your address changed, you may also find lawsuits through sites such as Consumer Action and ClassAction.org along with instructions on how to submit a claim. The Notice will instruct you what you need to do to file a claim. In some class action settlements, you are automatically submitted and need to do nothing further. However, in others, you may be required to submit more information to proceed such as documentation proving your purchase, such as a receipt or brokerage slip or other evidence that you bought or sold UiPath stock during the class period and suffered losses in UiPath stock.

The court will hold a final hearing in the class action against UiPath on a date provided in the Notice to decide whether to finally approve the settlement. If the Court finally approves the settlement, and there are no objections or appeals, settlement payments will be mailed to all Participating Class Members within a few months. However, if there are objections or appeals, resolving them can take a significant amount of time, perhaps more than a year to resolve the UiPath ​lawsuit.

If you receive a notice that the UiPath class action lawsuit has been settled and you do not believe the settlement is fair but do not want to opt-out and file your own lawsuit, you may object to the settlement. You may object to any part of the settlement and the Court will consider all timely filed objections in the class action against UiPath. The notice will contain the date when any objections must be filed and include instructions on where to send your objection and include a date for the final hearing in the UiPath class action lawsuit if you would like to appear and be heard by the court in the class action against UiPath.

​If you suffered losses in UiPath ​stock and are a member of the class, it does not cost anything to hire a UiPath stock loss lawyer. Our firm litigates securities fraud cases on a contingent fee basis, so plaintiffs and the class do not pay attorneys’ fees or court costs unless there is a recovery, and the attorney fees and cost are awarded by the court as a percentage of the total recovery for the class. So, contact a UiPath stock loss lawyer today if you suffered losses in UiPath ​stock about an UiPath class action lawsuit.

If you suffered losses in UiPath stock, contact UiPath stock loss lawyer Timothy L. Miles today for a free case evaluation about a class action against UiPath. Call today and see what an UiPath stock loss lawyer can do for you if you suffered losses in UiPath stock.