Case Summary

UiPath

NYSE: PATH

Case Details

  • Steiner v. UiPath, Inc. et al.
  • Class Period:December 1, 2023 - May 29, 2024
  • Date Filed:June 20, 2024
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:24-cv-04702
  • Lead Plaintiff Deadline: August 19, 2024
Days Left to
Seek Plaintiff
32

Overview

A class action lawsuit has been filed against UiPath, Inc. (“UiPath” or the “Company”) (NYSE: PATH) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The UiPath class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired UiPath securities between December 1, 2023, and the close of trading on May 29, 2024, both dates inclusive (the “Class Period”).  Investors have until August 19, 2024, to seek appointment as lead plaintiff of the UiPath class action lawsuit.

UiPath is a New York, New York-based business automation software company.  Since its founding, the Company provided robotic process automation (“RPA”) tools to its public and private sector customers to automate repetitive business tasks typically performed by humans.  With the evolution of artificial intelligence (“AI”) technology in recent years, UiPath has sought to enhance its business automation offerings with AI-powered products that work in conjunction with its RPA tools.  As alleged in the lawsuit, on September 27, 2022, after a period of stagnant growth and declining demand for its RPA products, UiPath announced a turnaround strategy.  The turnaround strategy included rebranding UiPath as an AI-powered Business Automation Platform and overhauling the Company’s go-to-market sales strategy.  The sales strategy overhaul included several facets, such as: (1) prioritizing selling UiPath’s platform of products as opposed to allowing its customers to pick and choose single product offerings; and (2) increasing sales resources dedicated to the Company’s largest customers and focusing sales efforts on its customers’ C-suites.

The UiPath class action lawsuit alleges that Defendants made false and/or misleading statements and/or failed to disclose that UiPath’s turnaround strategy had failed.  Fruitless investments and inconsistent execution plagued the Company’s overhauled go-to-market strategy.  Additionally, far from a competitive strength, UiPath’s AI-powered Business Automation Platform caused “confusion” among customers and was not able to be adequately scaled.  As a result, UiPath experienced significant difficulties closing and/or expanding large multiyear deals.

On May 29, 2024, UiPath issued a press release announcing the resignation of Defendant Robert Enslin as Chief Executive Officer (“CEO”) effective June 1, 2024, and the reappointment of Defendant Daniel Dines as CEO.  Also on May 29, 2024, UiPath issued a separate press release announcing disappointing first quarter of 2025 financial results and a significant cut in its revenue guidance for fiscal year 2025.  Specifically, UiPath lowered its fiscal year 2025 revenue guidance by approximately 10%, or $150 million, from a range of $1.555 billion to $1.560 billion, to a range of $1.405 billion to $1.410 billion.  On this news, the price of UiPath stock declined $6.23 per share, or over 34%, from $18.30 per share on May 29, 2024, to $12.07 per share on May 30, 2024.

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If you purchased or otherwise acquired UiPath securities between December 1, 2023, and the close of trading on May 29, 2024, both dates inclusive, 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. 

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