Faruqi & Faruqi Reminds GitLab Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of November 4, 2024 - GTLB

PRNewswire 9-Oct-2024 11:10 AM

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In GitLab To Contact Him Directly To Discuss Their Options

If you suffered losses exceeding $100,000 in GitLab between June 6, 2023 and March 4, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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NEW YORK, Oct. 9, 2024 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against GitLab Inc. ("GitLab" or the "Company") (NASDAQ:GTLB) and reminds investors of the November 4, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: Defendants created the false impression that they possessed reliable information pertaining  to  the  Company's ability to develop and incorporate AI throughout the software development cycle in order to optimize code generation thereby increasing market demand and making  all  levels  of  software  development  more  affordable and properly monetizing its AI features. In truth, 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. Defendants misled investors by continually highlighting its AI-driven innovations to develop software more efficiently and drive market share demands. Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning 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, GitLab issued a press release in which the Company lowered full-year guidance for fiscal year 2025. Among other items, GitLab said that it anticipated a first-quarter 2025 non-GAAP operating loss of $12 million to $13 million and non-GAAP operating revenue of only $5 million to $10 million for the full year. In relevant part, the Company stated that it needed time to build its pipeline and close deals on new products.

On this news, GitLab's stock price fell $15.63 per share, or 20.99%, to close at $58.84 per share on March 5, 2024.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding GitLab's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the GitLab class action, go to www.faruqilaw.com/GTLB or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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