GRABAR LAW OFFICE INVESTIGATES CLAIMS AGAINST OFFICERS AND DIRECTORS OF UIPATH INC. (NYSE: PATH)
UiPath, Inc. is a global provider of robotic process automation software.
A recently filed securities fraud class action complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) UiPath 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; (ii) UiPath’s actual total addressable market was not as large as portrayed by defendants, because many companies included in UiPath’s market survey did not need the type of high-cost, high-functionality automation products offered by UiPath; (iii) UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms; (iv) UiPath was losing customers due to the increased availability of low-code automation software offered by vendors, such as Microsoft’s Power Automate software, which were capable of addressing the majority of customer use cases at a fraction of the price of UiPath’s products and services; and (v) UiPath was suffering from a loss of channel sales due to strained relationships with UiPath’s partners as a result of increased competition between UiPath and these partners.
Current UiPath shareholders who have continuously held UiPath stock since on or shortly after UiPath’s April 21, 2021 IPO, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award at no cost to them whatsoever.
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