NEW YORK, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Palo Alto Networks, Inc. (“Palo Alto Networks” or the “Company”) (NASDAQ: PANW) in the United States District Court for the Northern District of California on behalf of all persons and entities who purchased or otherwise acquired Palo Alto Networks common stock between August 18, 2023 and February 20, 2024, both dates inclusive (the “Class Period”). Investors have until April 26, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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After the market close on February 20, 2024, Palo Alto Networks announced financial results for the second quarter of 2024 and lowered its third quarter and full-year billings and revenue guidance. In an earnings call that same day, Defendants explained that “our guidance is a consequence of us driving a shift in our strategy in wanting to accelerate both our platformization and consolidation and activating our AI leadership.” Defendants also revealed that U.S. federal government deals for several large projects did not close and resulted in “a significant shortfall in our U.S. federal government business” that is expected to continue into the third and fourth quarters if 2024.
On this news, the price of Palo Alto Networks, Inc. common stock declined by $104.12 per share, or approximately 28%, on February 21, 2024.
The lawsuit alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material facts, including that: (1) The Company’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) the Company’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.
If you purchased or otherwise acquired Palo Alto Networks shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
