UiPath, Inc.
A securities class action has been filed in the USDC – S.D.N.Y. against UiPath, Inc. (PATH) (“UiPath” or the “Company”) on behalf of a class consisting of all persons and entities that purchased or otherwise acquired UiPath securities between April 21, 2021 through March 30, 2022, both dates inclusive (the “Class Period”).
Founded in 2005, UiPath is a global provider of RPA software. RPA software allows companies to use installed “robots” to execute mundane and menial tasks on behalf of their employees, freeing up those employees to perform more valuable tasks. Such tasks include, for example, logging into applications, extracting information from documents, moving folders, filling in forms, and updating information and databases. UiPath markets its software platform as an “end-to-end” solution that allows its customers to discover novel automation opportunities, as well as build, manage, run, engage, and govern their automations.
The Complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- 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 (“ARR”) metrics, cannibalizing its future sales, eroding UiPath’s margins, and increasing the risk of client churn;
- 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;
- UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms;
- 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
- 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.
On March 30, 2022, UiPath announced financial results for the quarter and year ended January 31, 2022. On this news, the price of UiPath common stock declined more than 25%, thereby harming investors.
If you purchased UiPath securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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