The Shareholder Derivative complaint alleges that certain officers and directors of Atlassian breached their fiduciary duties owed to the Company by personally making and/or causing the Company to make to the investing public a series of materially false and misleading statements about Atlassian’s business, operations, and prospects.
Specifically, the Individual Defendants willfully or recklessly made and/or caused the Company to make false and misleading statements to the investing public that failed to disclose, inter alia, that: (1) macroeconomic factors were having a material adverse impact on Atlassian’s business; (2) the slowing conversions from free to paid customers the Company was experiencing constituted a negative trend; (3) paid user growth also had slowed; (4) the Company failed to maintain internal controls; and (4) as a result, Defendants’ positive statements about the Company’s financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. As a result of the foregoing, Atlassian’s public statements were materially false and misleading at all relevant times.
The Individual Defendants also breached their fiduciary duties by failing to correct and/or causing the Company to fail to correct these false and misleading statements and omissions of material fact to the investing public.
Additionally, in breach of their fiduciary duties, the Individual Defendants caused the Company to fail to maintain adequate internal controls.
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