Levi & Korsinsky, LLP: SNOW CEO and CFO Face Personal Liability for Alleged Losses

Important Information Regarding Section 20(a) Individual Liability Claims

NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky, LLP alerts investors in Snowflake Inc. (NYSE: SNOW) of a pending securities class action naming senior executives as individual defendants. Class Period: June 27, 2023 through February 28, 2024. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [e-mail] | [phone].

Snowflake shares fell $41.72 per share, an 18.14% decline, after concealed revenue headwinds were disclosed on February 28, 2024. The Court has set April 27, 2026 as the deadline to apply for lead plaintiff appointment.

The Named Individual Defendants

Frank Slootman served as Snowflake's Chief Executive Officer from April 2019 until February 27, 2024, and as Chairman of the Board from December 2019 until February 2024. Michael P. Scarpelli served as Chief Financial Officer from April 2019 until February 2025. Both are named as individual defendants in this securities class action.

Section 20(a) Control Person Framework

The complaint asserts that Slootman and Scarpelli, by virtue of their positions, possessed the power and authority to control the contents of Snowflake's SEC filings, press releases, and presentations to analysts and institutional investors. The action contends they were provided with copies of the Company's reports alleged to be misleading prior to issuance and had the ability and opportunity to prevent their issuance or cause them to be corrected.

Sarbanes-Oxley Certification Obligations

As CEO and CFO respectively, Slootman and Scarpelli were required under Sections 302 and 906 of the Sarbanes-Oxley Act to personally certify the accuracy of Snowflake's periodic SEC filings, including that:

• Financial statements fairly presented the Company's financial condition and results of operations
• Disclosure controls and procedures were effective in ensuring material information was made known to them
• They disclosed any significant changes in internal controls
• The reports did not contain untrue statements of material fact or omit material facts necessary to avoid misleading investors

Alleged Control Person Liability

The pleading asserts that Slootman and Scarpelli:

• Monitored consumption and revenue data on a daily basis, giving them real-time visibility into business trends
• Initiated, tested, and rolled out product changes including tiered storage pricing and Iceberg Tables during the Class Period
• Knew that large customers had communicated plans to adopt Iceberg Tables, which would reduce storage and compute revenue
• Sold over $263 million and $28 million in Snowflake stock respectively during the Class Period, in transactions alleged to be suspicious in timing and amount
• Participated in conference calls where they made positive statements about consumption trends and the $10 billion 2029 revenue target while allegedly aware of material headwinds

Submit your information to join the recovery or call Joseph E. Levi, Esq. at [phone].

Scienter Allegations

"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When officers certify SEC filings while allegedly aware of undisclosed headwinds that undermine the basis for those statements, important accountability questions arise." -- Joseph E. Levi, Esq.

The complaint charges that Defendants' insider sales of over $400 million in Snowflake stock during the Class Period, combined with their daily monitoring of consumption data and direct involvement in product pricing decisions, support a strong inference that they knew or recklessly disregarded the falsity of their public statements.

WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.