Robbins LLP is Investigating Allegations that Snowflake Inc. (SNOW) Misled Investors Regarding its Business Prospects

Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Snowflake Inc. (NYSE: SNOW) Class A common stock between June 27, 2023 and February 28, 2024. Snowflake is a software company that provides cloud data storage that enables customers to consolidate data onto data-driven applications and share data for the purpose of running analytics and other processes.

The Allegations:

According to the complaint, during the class period defendants repeatedly made positive  statements about the state of its business, including positive statements about customer usage of, and new developments for, its products. At the same time, defendants failed to disclose that: (1)

product efficiency gains, Iceberg Tables and tiered storage pricing were expected to have a material negative impact on consumption and revenues, and (2) as a result, defendants’ positive statements about consumption patterns, revenues, and demand for Snowflake products lacked a reasonable basis.

Plaintiff alleges that on February 28, 2024, Snowflake shocked investors when, after the market closed, the Company issued a press release and filed a report with the SEC on Form 8-K that disclosed its financial results for the quarter ended January 31, 2024 and full fiscal year 2024. On that same day, during a conference call with investors and analysts after the disclosure of Snowflake’s financial results, defendant Scarpelli stated that they were forecasting increased revenue headwinds associated with product efficiency gains, tiered storage pricing and the expectation that some of their customers will leverage Iceberg Tables for their storage. On this news, the price of Snowflake’s Class A common stock declined $41.72, or 18.14%, from a closing price of $230.00 per share on February 28, 2024, to close at $188.28 per share on February 29, 2024.

What Now: You may be eligible to participate in the class action against Snowflake Inc. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts 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. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.