The Class: Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Palantir Technologies Inc. (NYSE: PLTR) securities between November 9, 2021 and May 6, 2022, for 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.
If you would like more information about Palantir Technology Inc.'s misconduct, click here.
What is this Case About: Palantir Technologies Inc. (PLTR) Mislead Investors Regarding its Financial Prospects
According to the complaint, during the class period, defendants failed to disclose that 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. As a result, Palantir was likely to and did miss consensus estimates for its first quarter 2022 ("Q1") EPS and second quarter 2022 ("Q2") sales outlook.
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 over 21%, to close at $7.46 per share on May 9, 2022.
Next Steps: If you acquired shares of Palantir Technologies Inc. between November 9, 2021 and May 6, 2022, you have until November 14, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Palantir Technologies Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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