Lawsuit filed for Investors in shares of Guidewire Software, Inc. (NYSE: GWRE)

An investor, who purchased shares of Guidewire Software, Inc. (NYSE: GWRE), filed a lawsuit over alleged Securities Laws violations by Guidewire Software, Inc.

Investors who purchased shares of Guidewire Software, Inc. (NYSE: GWRE) have certain options and for certain investors are short and strict deadlines running. Deadline: September 23, 2020. NYSE: GWRE investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

San Mateo, CA based Guidewire Software, Inc. provides software products for property and casualty (“P&C”) insurers worldwide.
On March 4, 2020, Guidewire Software, Inc. announced its financial results for the second quarter of 2020. Guidewire Software, Inc. was forced to slash its revenue guidance for fiscal year 2020 by $57 million, from a range of $759 million to $771 million down to $702 million to $714 million. Rather than forecasting a year-over-year revenue increase of up to 7% for fiscal 2020, the Company was now forecasting a substantial revenue decline of approximately 7.5%. The Company similarly lowered its critical ARR guidance to be between 11% and 12% in fiscal 2020, compared to its previous range of 14% to 16%.

Shares of Guidewire Software, Inc. (NYSE: GWRE) declined from $124.16 per share on February 19, 2020 to as low as $71.64 per share on April 3, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Guidewire Software, Inc. (NYSE: GWRE) common shares between March 6, 2019 and March 4, 2020, that the defendants violated Federal Securities Laws.

The plaintiff claims that the Defendants represented to investors that Guidewire was well-positioned to capitalize on a shift in the P&C insurance industry away from on-premise software systems to software systems provided over the cloud. Defendants touted the “robust” demand that existed for Guidewire’s cloud-based products and assured investors that customer demand was “enduring and broad-based across most or all segments of the market.”

The plaintiff alleges that the defendants further touted the demand for Guidewire’s cloud offering by reporting, at the end of each quarter, that cloud sales represented a substantial and growing percentage of the Company’s overall sales. The Company also issued highly favorable revenue and Annual Recurring Revenue (“ARR”) guidance, and assured investors that customer demand remained strong across the Company’s entire product offering, including its legacy on-premise business.

More specifically, the plaintiff claims that between March 6, 2019 and March 4, 2020, the demand for Guidewire’s cloud products was weak and the Company’s transition to the cloud was not going well because Guidewire’s cloud-based products needed to be significantly improved to meet customer needs and catch-up with rival systems, that Guidewire’s failed transition to the cloud was damaging the Company’s traditional on-premise business, as customers delayed purchasing decisions or declined to renew existing licenses, and that Guidewire’s revenue guidance, including guidance principally based on significantly increasing demand for the Company’s cloud-based products, was baseless and unattainable.

Those who purchased shares of Guidewire Software, Inc. (NYSE: GWRE) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.