Lawsuit filed for Investors in UiPath Inc. (NYSE: PATH) in effort to Recover Losses

An investor, who purchased shares of UiPath Inc. (NYSE: PATH), filed a lawsuit over alleged violations of Federal Securities Laws by UiPath Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of UiPath Inc. (NYSE: PATH) have certain options and for certain investors are short and strict deadlines running. Deadline: August 19, 2024. NYSE: PATH investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

New York based UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. With the evolution of AI technology in recent years, UiPath Inc. has sought to enhance its offering with AI-powered products that work in conjunction with its RPA tools.

On September 27, 2022, UiPath Inc. announced a turnaround strategy designed to accelerate growth. 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.

Then on May 29, 2024, UiPath Inc. filed a form with the SEC that stated that on "May 23, 2024, Robert Enslin informed UiPath, Inc. [. .] of his resignation from the Board of Directors of the Company (the "Board") and from his position as Chief Executive Officer ("CEO") of the Company, effective June 1, 2024 (the "Effective Date"). In addition, Mr. Enslin will no longer stand for election as a member of the Board at the Company's upcoming Annual Meeting of Stockholders scheduled to be held on June 20, 2024. Mr. Enslin's resignation is not the result of any disagreement with the Company."
On the same day, UiPath Inc its First Quarter 2025 financial results and significantly cut its FY 25 revenue guidance by 10%, or $150 million. UiPath Inc attributed the results and guidance to several factors related to its failed turnaround strategy, including an inadequate "execution strategy to scale" the Company's AI-powered growth products "to reach their full potential," and that AI had "create[ed] a little bit of confusion with our customers." UiPath Inc also described how the "investments we have made to reaccelerate growth have fallen short of our expectations, [and] made us less agile in responding to customer needs" while experiencing "contract execution challenges on large deals."

Shares of UiPath Inc. (NYSE: PATH) declined from $27.87 per share on February 12, 2024, to as low as $11.07 per share on June 20, 2024.

The plaintiff claims that between December 1, 2023 and May 29, 2024, the defendants made materially false and misleading statements concerning the success of UiPath's turnaround strategy. For instance, defendants represented that the Company was "executing against that strategy, and we're seeing [the] results in the deal quality and the customer quality," asserted that "our strategic investments in innovations and our go-to-market ecosystem positions us well for continued momentum," and that "there's no doubt there's [been] better execution" since the implementation of the turnaround strategy.

Those who purchased shares of UiPath Inc. (NYSE: PATH) have certain options and should contact the Shareholders Foundation.

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 lawsuits, 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.