On May 29, 2024, UiPath announced the sudden departure of CEO Robert Enslin. On the same day, UiPath announced disappointing 1Q 2025 financial results and significantly cut its FY 2025 revenue guidance by 10%, or $150 million. The Company attributed the poor results and guidance to several factors related to its failed turnaround strategy, including an inadequate “execution strategy to scale” the Company’s AI-powered growth products “to reach their full potential,” and that AI had “create[ed] a little bit of confusion with our customers.” Ui Path also described how the “investments we have made to reaccelerate growth have fallen short of our expectations, [and] made us less agile in responding to customer needs” while experiencing “contract execution challenges on large deals.”

In response to this news, the price of UiPath stock declined $6.23 per share, or more than 34%, from $18.30 per share on May 29, 2024 to a closing price of $12.07 per share on May 30, 2024.

The complaint alleges that throughout the Class Period, the defendants made materially false and misleading statements concerning UiPath’s turnaround strategy, including that the Company was “executing against that strategy, and we’re seeing [the] results in the deal quality and the customer quality,” “our strategic investments in innovations and our go-to-market ecosystem positions us well for continued momentum,” and “there’s no doubt there’s [been] better execution” since the implementation of the turnaround strategy.

Investors who purchased or acquired UiPath securities between December 1, 2023 and May 9, 2024, may no later than August 19, 2024, seek to be appointed as a lead plaintiff representative of the class.