Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Citrix To Contact Him Directly To Discuss Their Options
NEW YORK - (NewMediaWire) - November 24, 2021 - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Citrix Systems, Inc. (“Citrix” or the “Company”) (NASDAQ: CTXS) and reminds investors of the January 18, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in Citrix stock or options between January 22, 2020 and October 6, 2021 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). You may also click here for additional information: www.faruqilaw.com/CTXS.
There is no cost or obligation to you.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that throughout the Class Period, Defendants repeatedly, falsely assured investors that the transition from on-premise to the cloud product was going smoothly. In addition, in response to the COVID-19 pandemic and the shift to remote work, Citrix created a shorter duration, on-premise subscription license (the "Business Continuity Licenses") that the Company offered at a discounted rate, and which Defendants claimed would transition to cloud accounts after the one-year license expired. As a result of Defendants' misrepresentations, Citrix common stock traded at artificially inflated prices during the Class Period.
The truth began to emerge on April 29, 2021, when Citrix announced lower than expected license conversions of the Business Continuity Licenses. Specifically, the Company explained that the Business Continuity Licenses did not transition to long-term cloud contracts as expected. Instead, many customers “rolled to another short-term” on-premise license, citing the ongoing COVID-19 pandemic.
These disclosures caused the Company’s stock to decline 7.6%, from $138.51 per share to $128.02 per share. However, the Company continued to assure investors that this was a “very isolated item” and that the “transition to the cloud is progressing well.”
On July 29, 2021, the Company reported that, despite prior assurances, the transition to cloud was not as successful as the Company had led investors to believe. Specifically, Citrix cited “the challenge associated with transitioning the business to [cloud] and the need to evolve our sales strategy to deliver more predictable results.” Further, Citrix announced a major restructuring of its sales leadership in order to “enhance [its] focus on” cloud migration. According to the Company, these changes were “significant and may cause short-term disruption before yielding tangible results.”
These disclosures caused the Company’s stock to decline 13.6%, from $114.55 per share to $99.00 per share.
Then, on October 6, 2021, after markets closed, the Company announced that Defendant Henshall had stepped down as President and Chief Executive Officer (“CEO”) of Citrix.
This disclosure caused the Company’s stock to decline 7.2% over the next two days, from $105.96 per share to $98.32 per share.
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 Citrix’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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