Did you lose money on investments in Palantir Technologies? If so, please visitPalantir Technologies Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, NY / ACCESSWIRE / September 22, 2022 / Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of Palantir Technologies Inc. ("Palantir" or the "Company") (NYSE:PLTR) between November 9, 2021 and May 6, 2022, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the District of Colorado and alleges violations of the Securities Exchange Act of 1934.
Palantir builds and deploys software platforms to assist the U.S. intelligence community in counterterrorism investigations and operations. The Company has two operating segments, commercial and government, with the latter primarily serving agencies in the U.S. federal government and non-U.S. governments. Palantir also invests in so-called "marketable securities" consisting of equity securities in publicly-traded companies.
Palantir has consistently described sources of geopolitical instability and other disruptions - e.g., armed conflicts, economic crises, and the COVID-19 pandemic - as tailwinds for its business, given that the Company's products and services are purportedly built to aid its customers in assessing and responding to such disruptions.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (i) Palantir's investments in marketable securities were having a significant negative impact on the Company's earnings per share ("EPS") results; (ii) Palantir overstated the sustainability of its government segment's growth and revenues; and (iii) Palantir was experiencing a significant slowdown in revenue growth, particularly among its government customers, despite ongoing global conflicts and market disruptions.
On May 9, 2022, Palantir issued a press release announcing its Q1 financial results and guidance for Q2. For Q1, Palantir announced adjusted EPS of $0.02, compared to analyst estimates of $0.04 per share, noting on a conference call that the "[f]irst quarter adjusted [EPS of] $0.02 . . . includes a negative $0.02 impact driven primarily by unrealized losses on marketable securities." The Company also disclosed that government revenue grew by only 16% year-over-year for Q1, representing a significant slowdown in revenue growth compared to prior quarters, and that, for Q2, the Company expected $470 million in sales, compared to estimates of $483.76 million.
On this news, Palantir's stock price fell $2.02 per share, or 21.31%, to close at $7.46 per share on May 9, 2022.
As multiple news outlets reported that day, Palantir's significant decline in revenue growth, particularly from its government customers, surprised investors, especially given the ongoing geopolitical instability and other disruptions caused by, inter alia, the ongoing COVID 19 pandemic and Russo-Ukrainian War-that is, precisely the type of destabilizing conditions that the Company had previously touted as tailwinds for its business.
If you wish to serve as lead plaintiff, you must move the Court no later than November 14, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Palantir securities, and/or would like to discuss your legal rights and options please visit Palantir Technologies Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].
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SOURCE: Bernstein Liebhard LLP