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CTXS.US
id: 511

Citrix Systems (CTSX) Investor Settlement

S.D. Florida
Court
0:22-cv-62327
Case number
31 Jan 2022
Class period Start
12 Dec 2022
Class period End
Citrix Systems reached an agreement with $CTXS investors over claims that it made false financial projections and arranged an unfair merger.

Outline:

In 2022, Citrix Systems was accused of using false projections and misleading statements to secure approval for an unfairly priced merger. Following disclosures of lower-than-expected sales, $CTXS fell and Citrix Systems faced a suit from investors.

Timeline:
  • On January 22, 2022: Citrix Systems announced plans to be acquired by affiliates of Vista Equity Partners and Evergreen Coast Capital Corporation.
  • On April 1, 2022: Citrix Systems completed its acquisition.
  • On July 21, 2022: Citrix reported lower-than-expected earnings and growth.
  • On July 22, 2022: Following this news, $CTXS fell significantly.
  • On September 15, 2022: Investors filed a lawsuit against Citrix.
Background:

On January 22, 2022, Citrix Systems announced its acquisition by Vista Equity Partners and Evergreen Coast Capital Corporation.

This acquisition was presented as “a very positive development which will put Citrix in a better position to accelerate its transformation and invest in its growth strategy”. This was approved by Citrix shareholders on February 22, 2022, and completed by April 1, 2022.

In their July 2022 financial report, Citrix revealed significant revenue declines due to difficulties in moving their customers to cloud-based services and problems in implementing their new business model.

The company supposedly used false projections and misleading proxy statements to justify selling Citrix at a low price to Vista Equity Partners and Elliott Investment Management.

This led to a 9% drop in $CTXS value.

After Citrix disclosed disappointing financial results, investors sued the company.

What can investors expect now?

Citrix Systems has settled with $CTXS investors over claims that it made false financial projections and arranged an unfair merger.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements
Financial Misrepresentation
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
12 December 2022
Plaintiffs
Juan A. Vargas
Attorneys
Miller Shah LLP (Fort Lauderdale, FL), Pomerantz LLP (New York, NY), Wohl & Fruchter LLP (Monsey, NY)
Defendants
Robert M. Calderoni, Nanci E. Caldwell, Murray J. Demo, Thomas E. Hogan, Moira A. Kilcoyne, Robert E. Knowling, Jr., Peter J. Sacripanti, J. Donald Sherman
Judge
Rodolfo A. Ruiz II
Trades matching type
FIFO

Frequently Asked Questions

Citrix Systems Inc

Citrix Systems, Inc., an enterprise software company, provides workspace, app delivery and security, and professional services worldwide. The company offers workspace services, including Citrix Wor...

    Ticker
    CTXS.US
    ISIN
    US1773761002
    CIK
    877890
    Sector
    Technology
    Industry
    Software - Application
    Country
    USA
    Address
    851 West Cypress Creek Road, Fort Lauderdale, FL, United States, 33309