INVESTOR ALERT: Shareholder Class Action Lawsuit Filed Against Elastic N.V. (NYSE: ESTC); DiCello Levitt LLP Encourages Investors with Losses to Discuss Their Options with Counsel

/EIN News/ -- SAN DIEGO, Feb. 18, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired ELASTIC N.V. (NYSE: ESTC) (“Elastic” or the “Company”) securities between May 31, 2024 and August 29, 2024 (the “Class Period”), charging the Company and certain senior executives with violations of the federal securities laws (collectively, “Defendants”).  

Elastic investors have until April 14, 2025 to seek appointment as lead plaintiff of the Elastic class action lawsuit.

If you purchased or acquired Elastic securities between May 31, 2024 and August 29, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/elastic/.

You can also contact DiCello Levitt attorneys Brian O’Mara or Ruben Peña by calling (888) 287-9005 or emailing investors@dicellolevitt.com.   Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.

No Class Has Been Certified.   Until a class is certified, you are not represented by counsel unless you retain one.   You may select counsel of your choice.

Case Allegations

Elastic is an American-Dutch software company that provides a platform for real-time search, observability, security, and generative artificial intelligence (“AI”).   The Company’s platform enables customers to find insights and drive AI and machine learning use cases from large amounts of data.

On May 30, 2024, Elastic issued a press release providing financial guidance for the Company’s fiscal year (“FY”) 2025, including revenue of $1.468 billion to $1.48 billion, representing 16% year-over-year growth at the midpoint.

The Elastic lawsuit alleges that Defendants issued materially false and misleading statements about the Company’s business, operations, and prospects during the Class Period.   Specifically, Defendants failed to disclose that: (i) Elastic had significantly transformed its sales operations, particularly with respect to its customer segments in the Americas; (ii) the alterations were likely to, and did, disrupt Elastic’s sales operations during the first quarter of FY 2025; (iii) consequently, Defendants had exaggerated the stability of Elastic’s sales operations; and (iv) as a result, Elastic would probably not meet its previously issued revenue guidance for FY 2025.

The truth emerged on August 29, 2024, when Defendants issued a press release announcing they were lowering Elastic’s FY 2025 revenue guidance to a range of $1.436 billion to $1.444 billion from a previously issued FY 2025 revenue guidance of $1.468 billion to $1.48 billion. In the press release, Defendants explained the reduction in FY 2025 guidance was because Elastic had experienced “a slower start to the year with the volume of customer commitments impacted by segmentation changes that we made at the beginning of the year, which are taking longer than expected to settle. We have been taking steps to address this, but it will impact our revenue this year.”

That same day, during an earnings call to discuss Elastic’s first quarter financial results for FY 2025, Defendants clarified the nature, scope, and timing of the “segmentation changes” that had affected Elastic’s FY 2025 revenue guidance. In particular, Defendants disclosed that they had “created more focus on selling into our largest accounts by reducing the number of accounts per sales rep and created distinct greenfield territories to focus on landing new customers, both in the enterprise and commercial segments”; that they had implemented these changes too suddenly and should have “stagger[ed]” and implemented them “a little more gradually”; that these changes had impacted “pretty much all [of] the [Company’s] teams” in the Americas; that they had “anticipated some degree of change associated with” or were aware of these changes when they issued their initial FY 2025 revenue guidance; and that they had implemented these changes before the start of the Class Period.

On this news, the price of Elastic’s ordinary shares fell by $27.45 per share, or 26.49%, to close at $76.19 per share on August 30, 2024.

About DiCello Levitt

At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise – for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations – and our capital – on the line for our clients.

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Media Contact

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