Guidewire Software Inc. Class Action Lawsuit
- Company Name
- Guidewire Software Inc.
- Stock Symbol
- Class Period
- March 6, 2019 to March 4, 2020
- Motion Deadline
- September 23, 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.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Guidewire Software common stock during the Class Period to seek appointment as lead plaintiff in the Guidewire Software class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Guidewire Software class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Guidewire Software class action lawsuit. An investor’s ability to share in any potential future recovery of the Guidewire Software class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Guidewire Software class action lawsuit or have questions concerning your rights regarding the Guidewire Software class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Guidewire Software class action lawsuit must be filed with the court no later than September 23, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.