Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
PATH.US
id: 1263
UiPath (PATH) AI Platform Issues Case
S.D. New York
Court1:24-cv-04702
Case number12/01/2023
Class period Start05/29/2024
Class period End08/19/2024
Lead Plaintiff motion deadline- $PATH stockholder filed a claim vs. UiPath for hiding technical issues and security risks of their AI-based sales strategy.
- On May 30, 2024, after the disappointing financial results, $PATH dropped by over 34%.
- UiPath investors can join this case to be notified about potential recovery.
Case Details:
On December 1, 2023, UiPath reported strong Q3 results, which led to a nearly 27% increase of $PATH due to the promised success of their new AI platform.
The company announced a strategic plan to drive growth by enhancing its products with AI, restructuring its sales approach, and focusing on high-value customers and industries.
However, on May 29, 2024, UiPath reported disappointing Q1 financial results and announced the sudden resignation of its CEO.
Supposedly, the AI platform faced technical issues such as bugs and security problems, which prevented UiPath from meeting its growth targets.
On May 30, 2024, after the resignation of the CEO, $PATH fell over 34%.
Based on these events, a $PATH stockholder filed a claim against UiPath and its leaders, accusing them of the following:
- UiPath overstated its strategy's success and its AI-powered platform's effectiveness.
- The company struggled to expand its AI tools, confusing customers and causing technical issues.
Considering all the representations, investors suspect UiPath overstated the effectiveness of its AI-based sales strategy.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/29/2024
Filing date
06/20/2024
Lead Plaintiff Deadline
08/19/2024
Judge
John P. Cronan