Robbins Geller Rudman & Dowd LLP Provides Lead Plaintiff Opportunity for Palo Alto Networks Inc. Investors

Investors who have incurred considerable losses in their Palo Alto Networks Inc. (NASDAQ: PANW) stock holdings are being alerted of an opportunity to potentially lead a class action lawsuit. The law firm Robbins Geller Rudman & Dowd LLP has made an announcement regarding this matter, specifically targeting those who purchased or acquired the common stock of Palo Alto Networks between August 18, 2023, and February 20, 2024, a period now referred to as the Class Period. These individuals have a deadline of April 26, 2024, to seek appointment as the lead plaintiff in the securities class action lawsuit filed against Palo Alto Networks and certain executives, alleging violations of the Securities Exchange Act of 1934.

Details of the Class Action Lawsuit

The lawsuit, formally known as Schlaegel v. Palo Alto Networks Inc., claims that the cybersecurity giant and its top executives made false and misleading statements or failed to disclose specific facts during the Class Period. Among the allegations are that the company's initiatives to consolidate and platformize its offerings did not significantly increase market share, and that free product enhancements and platformization efforts were necessary to attract customers. Furthermore, the lawsuit contends that the previously reported high billing growth rates were unsustainable and that the launch of new AI products did not lead to expected increases in platform adoption and consolidation.

Consequences for Palo Alto Networks

The dispute came to a head on February 20, 2024, when Palo Alto Networks significantly lowered its billing guidance, expecting total billing growth to teeter between 2-4% and predicting revenue increases in the range of 13-15%. CEO Nikesh Arora attributed this downward revision to expedited platformization efforts and 'activating our AI leadership.' Additionally, the CEO disclosed the failure to close several large projects with the U.S. federal government, which led to a substantial shortfall expected to persist into the following two quarters. Following these disclosures, Palo Alto Networks' stock value plunged over 28%.

The Lead Plaintiff Process

The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Palo Alto Networks stock during the Class Period to volunteer as a lead plaintiff. The designated lead plaintiff, who typically has the largest financial interest and is a representative case for the class members, will direct the proceedings of the class action lawsuit. It is important to note that the potential to share in any possible future recovery does not hinge on serving as lead plaintiff.

Background on Robbins Geller Rudman & Dowd LLP

Robbins Geller Rudman & Dowd LLP is recognized as a leading firm in representing plaintiffs in complex class actions, including securities fraud. Renowned for recovering more than $1.75 billion for investors in 2022 alone, the firm continues to recover substantial funds for aggrieved parties. Globally, with 200 lawyers across 10 offices, Robbins Geller boasts a history of achieving landmark securities class action recoveries.

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