Citrix Systems, Inc. (CTXS) Misled Investors Regarding Subscriber Interest in its Cloud-Based Service
A class action was filed on behalf of all persons and entities that purchased Citrix Systems, Inc. (NASDAQ: CTXS) securities between January 22, 2020 and October 6, 2021. The complaint alleges violations of the Securities Exchange Act of 1934. Citrix is a software company that provides users with secure remote access to computer networks.
According to the complaint, in 2019, Citrix announced it would be shifting from a perpetual license model to a subscription license payment model, as well as transitioning from a software solution previously provided on-premises to a cloud-based service. During the class period, the Company claimed that the transition to a cloud-based product and to a subscription-pricing model was going smoothly and successfully.
Then, on April 29, 2021, Citrix announced lower than expected license conversions and that customers were not transitioning to the long-term cloud contracts as expected. On this news, the stock price fell 7.6%. However, the Company continued to assure investors that this was a “very isolated item” and that the “transition to the cloud is progressing well.”
On July 29, 2021, Citrix reported that, despite prior assurances, the transition to the cloud was not as successful as the Company had led investors to believe. Citrix also announced a major restructuring of its sales leadership in order to “enhance [its] focus on” cloud migration. These changes were “significant and may cause short-term disruption before yielding tangible results.” Following these disclosures, Citrix’s stock dropped from $114.55 to $99.00 per share, or 13.6%.
Finally, on October 6, 2021, Citrix announced that its president and chief executive officer had stepped down. On this news, the Company’s stock dropped from $105.96 to $98.32 per share over the next two days.
If you purchased shares of Citrix Systems, Inc. (CTXS) securities between January 22, 2020 and October 6, 2021, you have until January 18, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.