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PATH.US

UiPath (PATH) Misleading IPO Case

S.D. New York
Court
1:23-cv-07908
Case number
21 Apr 2021
Class period Start
30 Mar 2022
Class period End
06 Nov 2023
Lead Plaintiff motion deadline
  • In March 2022, UiPath released disappointing revenue and ARR guidance for 2023.
  • $PATH fell by 25.7% and lost $3.5 billion of its capitalization, damaging shareholders.
  • Investors suspect UiPath of misleading about business prospects within the IPO in 2021.
On March 30, 2022, UiPath (PATH) released disappointing revenue and ARR guidance for 2023, stating that the downward growth trajectory was expected to continue.

On this news, $PATH fell by 25.7% and lost $3.5 billion of its capitalization, damaging shareholders.

On September 7, 2021, UiPath released Q2 2022 financial results:
  • Revealing a slowdown in the Company’s revenues and reported annualized renewal run-rate.
  • The Company also revealed that its financial results provided to investors in connection with the Company's IPO had been boosted by previously undisclosed discounting and that UiPath was shifting away from discounted multi-year contracts and moving to a “ramping” contact model.
  • On this news, $PATH fell 12.9%, thereby injuring investors.
Taking all representations and consequent financial results into account, Investors have reasons to suspect UiPath of misleading about business prospects and addressable market size and failing to disclose that it had enacted a widespread discounting program prior to its IPO, which had the effect of temporarily boosting UiPath’s revenue and annualized recurring revenue metrics, cannibalizing its future sales, eroding UiPath’s margins, and increasing the risk of client churn
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Shareholder
Investment Bank
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
31 March 2022
Filing date
06 September 2023
Lead Plaintiff Deadline
06 November 2023
Collecting participants…
Created by Stan Vick, Scout

Uipath Inc

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. The company offers a sui...

    Ticker
    PATH.US
    ISIN
    US90364P1057
    CIK
    1734722
    Sector
    Technology
    Industry
    Software - Infrastructure
    Country
    USA
    Address
    452 5th Avenue, New York, NY, United States, 10018