SAN DIEGO & SAN MATEO, Calif.–(BUSINESS WIRE)–$GWRE #ClassAction–Shareholder rights law firm Robbins LLP announces that a purchaser of Guidewire Software Inc. (NASDAQ: GWRE) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between March 6, 2019 and March 4, 2020. Guidewire provides enterprise-level software systems for the property and casualty (“P&C”) insurance industry.
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Guidewire Software Inc. (GWRE) Accused of Misleading Shareholders
According to the complaint, throughout the relevant period, Guidewire made false and misleading statements regarding the “robust” demand for its cloud-based products and assured investors that customer demand was “enduring and broad-based across all segments of the market.” At the beginning of the class period, cloud sales purportedly represented between 55% – 75% of the Company’s totals sales, and by the end of the class period, Guidewire represented the range as between 70% – 80%. Notwithstanding these assurances, demand for Guidewire’s cloud products was weak and the Company’s transition to the cloud was not going well due to the inferiority of Guidewire’s product offerings in comparison with its competitors. Further, Guidewire’s transition to the cloud was damaging the Company’s traditional on-premises business, as customers delayed purchasing decisions or declined to renew existing licenses. As such, Guidewire’s revenue guidance was baseless and unattainable. On March 4, 2020, Guidewire announced its financial results for the second quarter of fiscal 2020, slashing its full year revenue guidance by $57 million. During an earnings conference call, defendants admitted the Company’s products needed improvement to meet customer needs and successfully compete against rival systems. Defendants also revealed that Guidewire customers had not transitioned to its cloud products as expected. On this news, Guidewire’s share price fell 17%, wiping out over $1.5 billion in market capitalization.
If you purchased shares of Guidewire Software, Inc. (GWRE) between April 8, 2016 and August 13, 2020, you have until September 14, 2020, to ask the court to appoint you lead plaintiff.
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