NEW YORK - (NewMediaWire) - September 10, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Guidewire Software, Inc. (“Guidewire” or the “Company”) (NYSE:GWRE) of the September 23, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Guidewire stock or options between March 6, 2019 and March 4, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/GWRE. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Guidewire securities between March 6, 2019 and March 4, 2020 (the “Class Period”). The case, Sheet Metal Workers Local 19 Pension Fund v. Guidewire Software, Inc. et al, No. 20-cv-05038 was filed on July 24, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors that: (1) that the Company’s transition to the cloud was not going well; (2) that Guidewire’s cloud-based products needed to be improved to meet customer needs and catch-up with rival systems; (3) that the Company’s failed transition to the cloud was also hurting Guidewire’s traditional on-premise business; and (4) as a result, Guidewire’s revenue guidance, including guidance principally based on significantly increasing demand for the Company’s cloud-based products, was baseless and unattainable.
Specifically, on March 4, 2020, only three months after reiterating its strong revenue guidance for fiscal 2020, the truth about Guidewire’s failed cloud transition emerged. In announcing its financial results for the second quarter of 2020, the Company was forced to slash its revenue guidance for fiscal year 2020 by $57 million, from a range of $759 million to $771 million down to $702 million to $714 million. Rather than forecasting a year-over-year revenue increase of up to 7% for fiscal 2020, the Company was now forecasting a substantial revenue decline of approximately 7.5%. The Company similarly lowered its critical ARR guidance to be between 11% and 12% in fiscal 2020, compared to its previous range of 14% to 16%.
On this news, Guidewire’s stock fell from a closing price of $112.48 on March 4, 2020 to $93.56 on March 5, 2020—a $18.92 or 16.82% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Guidewire’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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