Levi & Korsinsky, LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired UiPath Inc. (NYSE: PATH) securities.
If you suffered a loss on your UiPath investment and would like to explore a potential recovery under the federal securities laws, submit to us or contact Joseph E. Levi, Esq. via email at [email protected] or call 212-363-7500 to speak to our team of experienced shareholder advocates.
THE LAWSUIT: Apr 21 2021 - Mar 30 2022
CASE DETAILS: The filed complaint alleges that UiPath Inc. made materially false and/or misleading statements and/or failed to disclose that: (a) UiPath had enacted a widespread discounting program prior to the IPO, which had the effect of temporarily boosting the Company’s revenue and annualized renewal run-rate ("ARR") metrics, cannibalizing its future sales, eroding the Company’s margins, and increasing the risk of client churn; (b) UiPath’s actual total addressable market was not as large as portrayed by defendants, because many companies included in the market survey did not need the type of high-cost, high-functionality automation products offered by the Company; (c) UiPath was losing customers to Microsoft, ServiceNow, SAP, Salesforce, IBM, and other established enterprise software vendors that were building automation into their platforms; (d) UiPath was losing customers due to the increased availability of lowcode 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; (e) UiPath was suffering from a loss of channel sales due to strained relationships with the Company’s partners as a result of increased competition between UiPath and these partners; and (f) as a result of (a)-(e) above, defendants’ statements during the Class Period regarding the Company’s business, operations, and key financial metrics such as revenues and ARR were materially false and misleading.
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