UiPath, Inc. (NYSE : PATH)

This lawsuit is for anyone who acquired securities in UiPath, Inc. (NYSE: PATH) from April 21, 2021 through March 30, 2022.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to tell investors that the Company’s increased sales were actually the result of the Company running discounts rather than organic revenue growth, and that increased competition by Microsoft, among others, was actually slowing the Company’s revenue growth.

On September 7, 2021, 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. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on December 8, 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. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on March 30, 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. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in UiPath, Inc. (NYSE: PATH) from April 21, 2021 through March 30, 2022 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.