| COMPANY |
Palo Alto Networks, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
24-cv-01156 |
| JUDGE |
The Hon. Charles R. Breyer |
| CLASS PERIOD |
August 18, 2023 through February 20, 2024 |
| SECURITY TYPE |
Common Stock |
Palo Alto investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than April 26, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Palo Alto Networks, Inc. ("Palo Alto") (NASDAQ: (PANW) common stock between August 18, 2023 and February 20, 2024, both dates inclusive (the “Class Period”).
Case Background:
The Class Period begins on August 18, 2023, when Palo Alto held an earnings call about its reported financial results for its fiscal Q4 2023. On the call, Defendants touted the company’s platformization initiative, claiming that it was “continuing to drive large deal momentum.” Throughout the Class Period, Defendants continued to claim that the company’s consolidation and platformization initiatives were significantly driving increased market share.
Then, on February 20, 2024, during after-market hours, the truth was revealed when Palo Alto announced its financial results for Q2 2024 and drastically lowered its third quarter and full-year billings and revenue guidance. On an earnings call that same day, Defendants attributed the revised guidance “to a consequence of us driving a shift in our strategy in wanting to accelerate both our platformization and consolidation and activating our AI leadership” as well as due to a deal with the federal government that didn’t close as expected.
Following this news, Palo Alto’s stock fell $104.12 per share, or more than 25%, from a close of $366.09 on February 20, 2024, to close at $261.97 on February 21, 2024.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material facts, including that: (1) Palo Alto’s consolidation and platformization initiatives were not driving increased market share to a significant degree; (2) the company would need to ramp up platformization and free product offerings to entice customers to adopt more of their platforms; (3) Palo Alto’s high growth in billings was not sustainable; (4) new AI offerings were not facilitating greater platformization and consolidation; and (5) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about customer demand, billings, and platformization, as well as related financial results, growth, and prospects.
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.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.