Palo Alto Networks, Inc.
Company Name | Palo Alto Networks, Inc. |
Stock Symbol | PANW |
Class Period | August 18, 2023 to February 20, 2024 |
Lead Plaintiff Motion Deadline | April 26, 2024 |
On February 21, 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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