UiPath Faces Investor Lawsuits for Alleged False and Misleading Statements, Deadline for Lead Plaintiff Submission Looms

UiPath accused of boosting revenue metrics through a discounting program before its IPO and misrepresenting its total addressable market, leading to investor claims of financial losses as share prices decline following a series of disclosures.

• UiPath is facing investor lawsuits over allegations of false and misleading statements, with plaintiffs claiming the company boosted revenue through a large-scale discount program before its IPO, leading to inflated revenue and ARR metrics and risking future sales and client churn.
• The company is further accused of misrepresenting its total addressable market (TAM), as many firms included in its survey allegedly did not need UiPath's high-cost, high-functionality automation offerings.
• Competitors such as Microsoft, ServiceNow, SAP, Salesforce, and IBM, which are integrating automation into their platforms, are reportedly taking customers away from UiPath.
• The company's relationships with its partners are strained due to increased competition, resulting in a drop in channel sales.
• Investors suffered substantial financial losses as UiPath's share prices plunged following a series of disclosures, revealing disappointing ARR and revenue guidance and indicating persisting negative growth trends.

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