Palantir Technologies Inc.

On May 9, 2022,Palantir released its first quarter 2022 financial results, announcing an adjusted earnings per share (“EPS”) of $0.02, compared to analyst estimates of $0.04 per share, which “include[d] a negative $0.02 impact driven primarily by unrealized losses on marketable securities.” The Company also disclosed that government revenue had grown by only 16% year-over-year.

On the news, Palantir’s stock fell $2.02, or 21.3%, to close at $7.46 per share on May 9, 2022, 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) Palantir’s investments in marketable securities were having a significant negative impact on the Company’s EPS results; (2) Palantir overstated the sustainability of its government segment’s growth and revenues; (3) Palantir was experiencing a significant slowdown in revenue growth, particularly among its government customers, despite ongoing global conflicts and market disruptions; (4) as a result of all the foregoing, the Company was likely to miss consensus estimates for its Q1 EPS and Q2 sales outlook; 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.