Case Summary

Snowflake

NYSE: SNOW

Case Details

  • Flannery v. Snowflake Inc. et al.
  • Class Period:September 13, 2020 - March 02, 2022
  • Date Filed:February 29, 2024
  • Jurisdiction:U.S. District Court, Northern District of California
  • Docket Number: 5:24-cv-01234
  • Lead Plaintiff Deadline: April 29, 2024
Days Left to
Seek Plaintiff
6

Overview

A class action lawsuit has been filed against Snowflake, Inc. (“Snowflake” or the “Company”) (NYSE: SNOW) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Snowflake lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Snowflake common stock between September 16, 2020 and March 2, 2022, both dates inclusive (the “Class Period”), and investors have until April 29, 2024 to seek appointment as lead plaintiff of the Snowflake class action lawsuit.

Snowflake is a cloud data platform that enables its enterprise customers to consolidate data into a single source to build data-driven applications and share data.

The lawsuit alleges that Defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) Snowflake had systematically oversold capacity to customers which created a misleading appearance of demand for Snowflake’s products and services; (2) Snowflake had provided significant discounts to its customers prior to its initial public offering (“IPO”) that temporarily boosted sales but would not be sustainable after the IPO and/or would necessitate platform efficiency adjustments that negatively impacted client consumption and Snowflake’s revenue and profit margins; (3) as a result, Snowflake’s customers were poised to roll over a material amount of unused credits (and thereby cannibalize future sales) at the end of their contract terms or to refuse to renew their contracts at prior consumption levels or at all; and (4) consequently, Snowflake’s product revenue and remaining performance obligations had been artificially inflated leading up to and during the Class Period.

On March 2, 2022, Snowflake revealed that its product revenue growth rate for fiscal 2023 was projected to be slashed to a range of 65% to 67%, far below the triple-digit growth and purportedly ongoing favorable business trends highlighted by Defendants during the Class Period.

On a related earnings call also held on March 2, 2022, Snowflake’s Chief Financial Officer Defendant Michael P. Scarpelli further revealed that Snowflake customers were consuming at a reduced rate, which he blamed on “platform enhancements which lowered credit consumption.”  On this news, the price of Snowflake Class A common stock fell nearly 28% over several trading sessions, damaging investors.

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If you purchased or otherwise acquired Snowflake (NYSE: SNOW) common stock between September 16, 2020 and March 2, 2022, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Snowflake lawsuit is April 29, 2024.

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