| COMPANY |
GitLab Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
24-cv-06244 |
| JUDGE |
The Hon. Eumi Kim Lee |
| CLASS PERIOD |
June 6, 2023 through March 4, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS NOVEMBER 4, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
On March 4, 2024, GitLab announced its first quarter 2024 financial results, and revealed that the company was lowering its full year 2025 revenue guidance, in part, to give the company time to build its pipeline and close deals on new products. On the corresponding earnings call, Defendant Brian Robins, the company’s Chief Financial Officer, revealed that the revised guidance was due, in part, to customer “buying behavior and the normalization that we’ve seen in the market,” and to the company’s “ratable” revenue model. On this news, the price of GitLab Class A common stock declined $15.63 per share, or nearly 21%, from a close of $74.47 per share on March 4, 2024, to close at $58.84 per share on March 5, 2024.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants: (1) created the false impression they possessed reliable information pertaining to the company’s ability to develop and incorporate AI throughout the software development cycle in order to optimize code generation, thereby increasing market demand and making all levels of software development more affordable; (2) misrepresented that the company was properly monetizing its AI features, and failed to tell investors that there was weak market demand for those features and it required additional time to build its pipeline and close deals on new products; and (3) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.