Guidewire Software Inc. Class Action Lawsuit
- Company Name
- Guidewire Software Inc.
- Stock Symbol
- Class Period
- March 6, 2019 to March 4, 2020
- Northern District of California
The Guidewire Software Inc. class action lawsuit charges Guidewire Software and certain of its current and former officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Guidewire Software common stock between March 6, 2019 and March 4, 2020, inclusive (the “Class Period”). The Guidewire Software class action lawsuit was commenced on July 24, 2020 in the Northern District of California and is captioned Sheet Metal Workers Local 19 Pension Fund v. Guidewire Software Inc., No. 20-cv-05038.
Guidewire Software provides enterprise-level software systems for the property and casualty insurance industry.
The Guidewire Software class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (1) Guidewire Software’s transition to the cloud was not going well; (2) Guidewire Software’s cloud-based products needed to be improved to meet customer needs and catch up with rival systems; (3) Guidewire Software’s failed transition to the cloud was also hurting Guidewire Software’s traditional on-premise business; and (4) as a result, Guidewire Software’s revenue guidance, including guidance principally based on significantly increasing demand for Guidewire Software’s cloud-based products, was baseless and unattainable.
On March 4, 2020, Guidewire Software lowered its full year revenue guidance by $57 million, from a range of $759 million to $771 million to a range of only $702 million to $714 million. In addition, Guidewire Software cut its Annual Recurring Revenue guidance to 11% to 12% for the third quarter of 2020, down from a range of 14% to 16%. Defendants also revealed that Guidewire Software’s cloud products needed to be improved to meet customer needs and successfully compete against rival systems. Defendants further disclosed that a large swath of Guidewire Software’s customers no longer wanted Guidewire Software’s traditional on-premise products and had not adopted Guidewire Software’s cloud products. On this news, Guidewire Software’s share price fell approximately 17%, damaging investors.
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