Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Citrix To Contact Him Directly To Discuss Their Options
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Lightspeed 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).
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
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 $105.96per share to $98.32 per share.
Citrix Systems, Inc.
* The submission of this form does not create an attorney-client relationship.
Filed on 11/23/2021
Class period 01/22/2020 - 10/06/2021
Lead Plaintiff Deadline 01/18/2022
44 days remaining
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