The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Guidewire Software, Inc. (GWRE)
Additionally, the Company cut its Annual Recurring Revenue guidance from a range of 14% to 16%, down to 11% to 12% for the third quarter of 2020.
The Law Offices of Frank R. Cruz reminds investors of the upcoming September 23, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Guidewire Software, Inc. ("Guidewire" or the "Company") (NYSE: GWRE) common stock between March 6, 2019 and March 4, 2020, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On March 4, 2020, Guidewire announced its financial results for the second quarter of fiscal year 2020 and slashed its full-year revenue guidance by $57 million, from a range of $759 million to $771 million to only $702 million to $714 million. Additionally, the Company cut its Annual Recurring Revenue guidance from a range of 14% to 16%, down to 11% to 12% for the third quarter of 2020. During the accompanying earnings conference call, the Company specified that the Company's cloud products needed to be improved in order to meet customer needs and successfully compete against rival systems, and also revealed that a large swath of Guidewire customers no longer wanted the Company's traditional on-premise products and had not adopted Guidewire's cloud products.
On this news, the Company’s share price fell $18.92 per share, or over 16%, to close at $93.56 per share on March 5, 2020.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (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 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.
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If you purchased or otherwise acquired Guidewire securities during the Class Period, you may move the Court no later than September 23, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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