Palo Alto Networks
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
After the markets closed on February 20, 2024, Palo Alto Networks released its financial figures for the second quarter of 2024 and revised downwards its billings and revenue forecasts for the third quarter and the entire year. During the earnings call on the same evening, the company’s executives attributed the revised guidance to a strategic shift aimed at speeding up the integration and expansion of their platforms and harnessing their leadership in artificial intelligence. They also disclosed that they failed to secure expected deals with the U.S. federal government, leading to a significant drop in their U.S. federal government business, a trend anticipated to persist into the third and fourth quarters of 2024.
Following these announcements, the share price of Palo Alto Networks, Inc. plummeted by $104.12, or roughly 28%, on February 21, 2024.
The lawsuit contends that during the Class Period, the defendants consistently made misleading statements and omitted crucial information. Specifically, they failed to acknowledge that: (1) the company’s efforts in consolidation and platform integration were not significantly boosting market share; (2) to attract customers to their platforms, there was a necessity to increase platform integration and offer free products; (3) the company’s rapid billing growth was unsustainable; (4) the new AI products were not promoting greater platform integration and consolidation; and (5) therefore, the defendants did not have a solid basis for their optimistic statements regarding customer demand, billings, and platform integration, as well as their financial outcomes, growth, and future projections.
