Snowflake Inc. (SNOW)
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.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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 market hours on March 2, 2022, Snowflake reported its financial outcomes for the fourth quarter and the entire year of 2022, revealing that customer usage had decreased due to “platform enhancements” that reduced credit consumption. Additionally, Snowflake adjusted its expected revenue growth for fiscal 2023 to between 65% and 67%, a marked decrease considering the company’s revenue had doubled year-over-year in the previous six quarters.
Following these announcements, Snowflake’s share price dropped by $40.67, or 15.4%, ending the day at $224.02 on March 3, 2022. This downturn hurt investors, and the decline continued over the following trading days, with the stock price decreasing by another 14.5% to close at $191.61 on March 8, 2022, causing further investor losses.
The lawsuit filed regarding this case asserts that the defendants issued materially false and/or misleading statements and failed to disclose critical negative details about Snowflake’s business, operational, and financial prospects during the class period. Specifically, the suit claims that the defendants concealed: (1) Snowflake’s overselling of capacity to customers, falsely inflating demand for its products and services; (2) the company offering significant discounts pre-IPO to temporarily boost sales, which would not sustain post-IPO and necessitated platform efficiency changes adversely affecting customer usage and Snowflake’s revenue and profit margins; (3) the likelihood of customers not using their accumulated credits fully, impacting future sales, or not renewing contracts at previous levels or at all; (4) the artificial inflation of Snowflake’s product revenue and remaining performance obligations prior to and during the class period; and (5) as a result, the defendants’ optimistic statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable foundation.
