SAN DIEGO, Sept. 05, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder filed a class action on behalf of all investors who purchased or otherwise acquired GitLab Inc. (NASDAQ: GTLB) securities between June 6, 2023 and March 4, 2024. GitLab is a global software company that designs and develops software solutions.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that GitLab Inc. (GTLB) Misled Investors Regarding Demand for its Product
According to the complaint, during the class period, defendants created the false impression that they possessed reliable information pertaining to the Company’s ability to develop and incorporate AI throughout the software development cycle to optimize code generation thereby increasing market demand and making all levels of software development more affordable and properly monetizing its AI features. In truth, there was weak market demand for GitLab’s touted AI features and the Company was incurring an increasing amount of expenses involving JiHu, its joint venture in China, as well as the annual company-wide summit. Defendants misled investors by continually highlighting its AI-driven innovations to develop software more efficiently and drive market share demands.
Plaintiff alleges that on March 4, 2024, GitLab issued a press release reporting strong Q1 2024 results and then immediately followed this with a disclosure announcing lower than expected full-year guidance for 2025. GitLab attributed it to time needed to “build pipeline and close deals on new products.” On this news, the price of GitLab’s common stock declined from $74.47 per share on March 4, 2024, to $58.84 per share on March 5, 2024, a decline of about 21%.
What Now: You may be eligible to participate in the class action against GitLab Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by November 4, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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