Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against GitLab Inc. (GTLB)

Globe Newswire 5-Sep-2024 10:44 AM

NEW YORK, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired GitLab Inc. ("GitLab" or the "Company") (NASDAQ:GTLB) securities between June 6, 2023 and March 4, 2024, inclusive (the "Class Period"). The lawsuit seeks to recover damages for the Company's investors under the federal securities laws.

The Complaint alleges that Defendants disseminated materially false and misleading statements and/or concealed material adverse facts regarding GitLab's ability to develop AI features that would generate code more efficiently and increase market demand for its DevSecOps platform.

On March 4, 2024, the Company issued a press release reporting a strong Q1 in 2024, followed by an announcement lowering full-year guidance for 2025. In pertinent part, Defendants announced that the Company needed time to build its pipeline and close deals on new products. In addition, the Company provided first quarter 2025 and full year 2025 guidance with growth rates hovering between 30 and 31% and 27%, respectively. Furthermore, the Company anticipated a Q1 2025 non-GAAP operating loss of $12-$13 million and an operating non-GAAP revenue of $5-$10 million for the full year of 2025. Further, the Complaint alleges that on this news, the price of the Company's common stock declined significantly. From a closing market price of $74.47 per share on March 4, 2024, the Company's stock price fell to $58.84 per share on March 5, 2024, a decline of about 21% in the span of just a single day.

Investors who purchased or otherwise acquired shares of GitLab should contact the Firm prior to the November 4, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.