UiPath (PATH) AI Platform Issues Case

S.D. New York

Court

1:24-cv-04702

Case number

01 Dec 2023

Class period Start

29 May 2024

Class period End

19 Aug 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

29 May 2024

Filing date

20 June 2024

Lead Plaintiff Deadline

19 August 2024

Judge

John P. Cronan

UiPath (PATH) AI Platform Issues Case

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