The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Palo Alto Networks, Inc. (PANW)
LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming April 26, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Palo Alto Networks, Inc. (“Palo Alto” or the “Company”) (NASDAQ: PANW) common stock between August 18, 2023 through February 20, 2024, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On February 20, 2024, Palo Alto released its second quarter fiscal 2024 financial results and lowered its full year revenue and billing guidance. The Company attributed the revision to its “platformization,” in which it will be offering more “freemium” services to on-ramp customers into the full paid services platform, as well as a deal with the federal government that didn’t close as expected.
On this news, Palo Alto’s stock price fell $104.12, or 28.4%, to close at $261.97 per share on February 21, 2024, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s consolidation and platformization initiatives were not driving increased market share to a significant degree; (2) the Company would need to ramp up platformization and free product offerings to entice customers to adopt more of their platforms; (3) the Company’s high growth in billings was not sustainable; (4) new AI offerings were not facilitating greater platformization and consolidation; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Palo Alto common stock during the Class Period, you may move the Court no later than April 26, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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