Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against GitLab Inc. (GTLB)

Core Viewpoint - A securities class action lawsuit has been filed against GitLab Inc. for allegedly disseminating false and misleading statements regarding its AI capabilities and market demand for its DevSecOps platform [1][2]. Group 1: Lawsuit Details - The lawsuit was filed in the United States District Court for the Northern District of California on behalf of all individuals or entities that purchased GitLab securities between June 6, 2023, and March 4, 2024 [1]. - The complaint claims that GitLab concealed material adverse facts about its ability to develop AI features that would enhance code generation efficiency [2]. Group 2: Financial Performance and Stock Impact - On March 4, 2024, GitLab reported a strong Q1 2024 but subsequently lowered its full-year guidance for 2025, indicating a need for more time to build its pipeline and close deals on new products [3]. - The company provided guidance for Q1 2025 and full year 2025, projecting growth rates of approximately 30-31% and 27%, respectively [3]. - Following the announcement, GitLab's stock price dropped from $74.47 per share to $58.84 per share on March 5, 2024, marking a decline of about 21% in one day [3].