UiPath(US:PATH) GlobeNewswire News Roomยท2024-08-08 14:25Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against UiPath Inc. due to allegations of violations of federal securities laws, particularly related to misleading statements about the company's turnaround strategy and subsequent financial performance [2][4]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi is encouraging investors who suffered losses exceeding $100,000 in UiPath between December 1, 2023, and May 29, 2024, to discuss their legal rights [1]. - There is an August 19, 2024, deadline for investors to seek the role of lead plaintiff in a federal securities class action against UiPath [2]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [3]. Group 2: Financial Performance and Executive Changes - On May 29, 2024, UiPath announced the departure of CEO Robert Enslin and reported disappointing first-quarter financial results, significantly cutting its fiscal year 2025 revenue guidance by 10%, or $150 million [5]. - The company attributed its poor performance to a failed turnaround strategy, inadequate execution strategy for AI products, and challenges in contract execution on large deals [5]. - Following these announcements, UiPath's stock price fell by $6.23 per share, a decline of over 34%, from $18.30 to $12.07 [5]. Group 3: Allegations of Misleading Statements - The complaint against UiPath alleges that the company and its executives made false and misleading statements regarding the success of its turnaround strategy, claiming improved execution and customer quality [4]. - Specific statements included assertions about the effectiveness of strategic investments and the company's position for continued momentum, which are now under scrutiny [4]. Group 4: Call for Information - Faruqi & Faruqi is also seeking information from whistleblowers, former employees, and shareholders regarding UiPath's conduct [7].