The Gross Law Firm notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of Snowflake Inc. who purchased Common stock between September 16, 2020 and March 2, 2022.
The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (a) Snowflake had systematically oversold capacity to customers which created a misleading appearance of the demand for Snowflake’s products and services; (b) Snowflake had provided significant discounts to its customers prior to the Initial Public Offering (IPO) that temporarily boosted sales but would not be sustainable after the IPO and/or necessitate platform efficiency adjustments that negatively impacted client consumption and Snowflake’s revenue and profit margins; (c) as a result of (a)-(b) above, Snowflake’s customers were poised to roll over a material amount of unused credits (and thereby cannibalize future sales) at the end of their contracts’ terms or to refuse to renew their contracts at prior consumption levels or at all; (d) as a result (a)-(c) above, Snowflake’s product revenue and remaining performance obligations had been artificially inflated leading up to and during the class period; and (e) as a result of (a)-(d) above, defendants lacked a reasonable basis for their positive statements about Snowflake’s business, financials, and growth trajectory.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until April 29, 2024 to request that the court appoint them lead plaintiff.
To receive more information, please fill out the form.
