Unity Software Inc. (U) Reduces Fiscal 2022 Guidance to the Detriment of Investors
A shareholder filed a class action on behalf of all persons or entities that purchased or otherwise acquired Unity Software Inc. (NYSE: U) securities between March 5, 2021 and May 10, 2022, for violations of the Securities Exchange Act of 1934. Unity Software Inc. creates and operates an interactive real-time 3D content platform.
According to the complaint, throughout the class period, defendants made materially false and misleading statements and failed to disclose that deficiencies in Unity’s product platform reduced the accuracy of the Company’s machine learning technology and that this was likely to have a material negative impact on the Company’s revenues. As such, Unity had overstated the Company’s commercial and/or financial prospects for 2022 and would likely have to reduce its fiscal 2022 guidance.
On May 10, 2022, Unity announced its financial results for the first quarter of 2022. The Company also reduced its fiscal 2022 guidance, citing “challenges with monetization products.” Specifically, Unity stated that “a fault in [Unity’s] platform . . . resulted in reduced accuracy for [its] Audience Pinpointer tool, a revenue expensive issue given that [the] Pinpointer tool experienced significant growth post the IDFA changes.” On this news, Unity’s stock price fell $17.83 per share, or approximately 37%, to close at $30.30 per share on May 11, 2022.
Next Steps: If you acquired shares of Unity Software Inc. securities between March 5, 2021 and May 10, 2022, you have until September 5, 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.