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Citrix Systems, Inc. Class Action Lawsuit - CTXS

Company Name
Citrix Systems, Inc.
Stock Symbol
CTXS
Class Period
January 22, 2020 to October 6, 2021
Motion Deadline
January 18, 2022
Court
Southern District of Florida
50 days left to seek lead plaintiff status

Case Summary

The Citrix class action lawsuit seeks to represent purchasers of Citrix Systems, Inc. (NASDAQ: CTXS) common stock between January 22, 2020 and October 6, 2021, inclusive (the “Class Period”) and charges Citrix along with certain of its top executives with violations of the Securities Exchange Act of 1934.  The Citrix class action lawsuit was commenced on November 19, 2021 in the Southern District of Florida and is captioned City of Hollywood Police Officers’ Retirement System v. Citrix Systems, Inc., No. 21-cv-62380.

If you wish to serve as lead plaintiff of the Citrix class action lawsuit, please provide your information by clicking here.  You can also contact attorney Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the Citrix class action lawsuit must be filed with the court no later than January 18, 2022.

CASE ALLEGATIONS: Historically, Citrix’s technology was located “on-premise,” meaning it was installed directly onto computer servers owned and operated by its customers.  In 2019, prior to the Class Period, Citrix announced that it would be shifting from a perpetual license model to a subscription license payment model, as well as transitioning from a software solution previously provided on-premise to cloud-based services. 

Early in the Class Period, in response to COVID-19 and the shift to remote work, Citrix experienced a boost in sales.  As the Citrix class action lawsuit alleges, that boost was driven in part by Citrix’s decision to offer a shorter duration, on-premise license (the “Business Continuity Licenses”).  Citrix offered the Business Continuity Licenses at a discounted rate and expected that most customers would transition to cloud accounts after the one-year license expired.  But as the Citrix class action lawsuit alleges, Citrix throughout the Class Period falsely claimed that the transition to a cloud-based product and to a subscription pricing model was going smoothly and successfully.

On April 29, 2021, when Citrix announced lower than expected license conversions of the Business Continuity Licenses.  Specifically, Citrix explained that the Business Continuity Licenses did not transition to long-term cloud contracts as expected.  Instead, many customers “rolled into another short-term” on-premise license, citing the ongoing COVID-19 pandemic.  On this news, Citrix’s stock price fell by more than 7%.

Then, on July 29, 2021, Citrix reported that, despite prior assurances, the transition to cloud was not as successful as Citrix had led investors to believe.  Specifically, Citrix cited “the challenge associated with transitioning the business to [cloud] and the need to evolve our sales strategy to deliver more predictable results.”  Further, Citrix announced a major restructuring of its sales leadership in order to “enhance” its focus on cloud migration.  According to Citrix, these changes were “significant and may cause short-term disruption before yielding tangible results.”  On this news, Citrix’s stock price fell by more than 13%.

Finally, on October 6, 2021, Citrix announced that the company’s President and CEO, defendant David Henshall, had stepped down.  On this news, Citrix’s stock price fell by an additional 7.2% over the next two days, further damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Citrix common stock during the Class Period to seek appointment as lead plaintiff in the Citrix class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Citrix class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Citrix class action lawsuit.  An investor’s ability to share in any potential future recovery of the Citrix class action lawsuit is not dependent upon serving as lead plaintiff. 

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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