The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of GitLab Inc. (GTLB) Investors

Business Wire 19-Sep-2024 12:07 PM

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that 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"). GitLab investors have until November 4, 2024 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On March 4, 2024, GitLab lowered its full-year 2025 guidance, disclosing that it expected a non-GAAP operating loss of $12 million to $13 million and an operating non-GAAP revenue of $5 million to $10 million. The Company stated that the revision was due to needing time to build its pipeline and close deals on new products.

On this news, GitLab's stock price fell $15.63, or 21%, to close at $58.84 per share on March 5, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there was weak market demand for GitLab's touted AI features and the Company was incurring an increasing amount of expenses involving JiHu, its joint venture in China, as well as the annual company-wide summit; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased GitLab securities during the Class Period, you may move the Court no later than November 4, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased GitLab securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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