Grant & Eisenhofer Files Class Action Lawsuit Against Palantir on Behalf of Institutional Investor to Extend Class Period from Previously-Filed Action
October 26 2022 - 2:09PM
Business Wire
Pension fund Allegheny County Employees’ Retirement System has
filed a class action lawsuit today against software developer
Palantir Technologies Inc. (“Palantir” or the “Company”) and
certain of its senior executives.
The suit, brought in federal court in the United States District
Court for the District of Colorado, was filed by leading investor
law firm Grant & Eisenhofer.
The action is brought on behalf of all persons or entities who
purchased or otherwise acquired the securities of Palantir
Technologies Inc. (NYSE: PLTR) between February 16, 2021 and May
6, 2022, inclusive (the “Class Period”). The action is
captioned: Allegheny County Employees’ Retirement System v.
Palantir Technologies Inc., Alexander C. Karp, David Glazer, and
Shyam Sankar, caption: 1:22-cv-02805 (D. Co.). It is related to the
action titled Cupat v. Palantir Technologies Inc., et al.,
1:22-cv-02384 (D. Co.).
Palantir builds and deploys software platforms to assist the
U.S. and foreign intelligence community in counterterrorism
investigations and operations. The Company has two operating
segments, commercial and government, with the latter primarily
serving agencies in the U.S. federal government and non-U.S.
governments. Palantir also invests in so-called “marketable
securities” consisting of equity securities in publicly-traded
companies.
The complaint alleges violations of Sections 10(b) and 20(a) of
the 1934 Securities Exchange Act. Specifically, the lawsuit alleges
that throughout the Class Period, Defendants failed to disclose
that: (i) Palantir’s investments in marketable securities were
having a significant negative impact on the Company’s earnings per
share (“EPS”) results; (ii) Palantir overstated the sustainability
of its government segment’s growth and revenues; and (iii) Palantir
was experiencing a significant slowdown in revenue growth,
particularly among its government customers, despite ongoing global
conflicts and market disruptions.
Palantir has consistently described sources of geopolitical
instability and other disruptions - e.g., armed conflicts, economic
crises, and the COVID-19 pandemic - as tailwinds for its business,
given that the Company’s products and services are purportedly
built to aid its customers in assessing and responding to such
disruptions.
Yet, on May 9, 2022, Palantir announced adjusted EPS of $0.02
for Q1, compared to analyst estimates of $0.04 per share, noting on
a conference call that the “[f]irst quarter adjusted [EPS of] $0.02
. . . includes a negative $0.02 impact driven primarily by
unrealized losses on marketable securities.” The Company also
disclosed that government revenue grew by only 16% year-over-year
for Q1, representing a significant slowdown in revenue growth
compared to prior quarters, and that, for Q2, the Company expected
$470 million in sales, compared to estimates of $483.76
million.
On this news, Palantir’s stock price fell $2.02 per share, or
21.31%, to close at $7.46 per share on May 9, 2022.
As multiple news outlets reported that day, Palantir’s
significant decline in revenue growth, particularly from its
government customers, surprised investors, especially given the
ongoing geopolitical instability and other disruptions caused by,
inter alia, the ongoing COVID 19 pandemic and Russo-Ukrainian
War—that is, precisely the type of destabilizing conditions that
the Company had previously touted as tailwinds for its
business.
For investors who purchased or acquired Palantir securities
during the Class Period, you are a member of this proposed Class
and may be able to seek appointment as lead plaintiff, which is a
court-appointed representative for the Class, by complying with the
relevant provisions for the Private Securities Litigation Reform
Act of 1995 (the “PSLRA”). See 15 U.S.C. Section
78u-4(a)(2)(A)(i)-(iv). If you wish to serve as lead plaintiff, you
must move the Court by no later than November 14, 2022. You do not
need seek to become a lead plaintiff in order to share in any
possible recovery. You may also retain counsel of your choice to
represent you in this action.
If you wish to discuss this action or have any questions
concerning this notice or your rights, please contact Caitlin M.
Moyna at Grant & Eisenhofer at 646-722-8513, or via email at
cmoyna@gelaw.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20221025006158/en/
Caitlin M. Moyna Grant & Eisenhofer 646-722-8513
cmoyna@gelaw.com.
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