INTRODUCTION TO THE GITLAB CLASS ACTION LAWSUIT
The GitLab class action lawsuit seeks to represent purchasers or acquirers of GitLab Inc. (NASDAQ: GTLB) publicly traded securities between June 6, 2023, and March 4, 2024, inclusive (the “Class Period”). Captioned Dolly v. GitLab Inc., No. 24-cv-06244 (N.D. Cal.), the GitLab class action lawsuit charges GitLab and certain of GitLab’s top executives with violations of the Securities Exchange Act of 1934.
If you have suffered losses in GitLab stock and are interested in becoming the lead plaintiff in the GitLab class action lawsuit or have any inquiries regarding your rights as a shareholder, please reach out to GitLab Stock Loss Lawyer Timothy L. Miles at no cost. You can contact him by calling 855/846-6529, sending an e-mail to tmiles@timmileslaw.com, or filling out a contact form below. Lead plaintiff motions for the GitLab class action lawsuit must be filed with the court no later than November 4, 2024.
ALLEGATIONS IN THE GITLAB CLASS ACTION LAWSUIT
GitLab is a global software company that designs and develops software solutions. Below are the key allegations in the GitLab class action lawsuit.
- Misleading AI Claims:
GitLab allegedly created a false impression about their ability to develop and incorporate AI throughout the software development cycle, exaggerating its potential to optimize code generation and increase market demand.
- Financial Misrepresentation:
The lawsuit claims GitLab failed to disclose weak market demand for their touted AI features and increasing expenses related to JiHu, their joint venture in China, as well as the annual company-wide summit.
- Stock Price Impact:
Following GitLab’s disclosure of lower-than-expected full-year guidance for 2025 on March 4, 2024, the company’s stock price plummeted nearly 21%.
- Class Period Allegations:
Throughout the Class Period, defendants allegedly made false and/or misleading statements, failing to provide accurate information about GitLab’s market position and financial outlook.
- Investor Deception:
The lawsuit asserts that GitLab’s actions led investors to believe they possessed reliable information about the company’s AI capabilities and market demand, potentially influencing investment decisions.
THE LEAD PLAINTIFF DEADLINE IN THE CLASS ACTION AGAINST GITLAB
Lead plaintiff motions for the GitLab class action lawsuit must be filed with the court no later than November 4, 2024. When a securities class action is filed such as the GitLab class action lawsuit:
The person who files the first complaint is required to publish a notice announcing the filing.
Anyone who wants to be lead plaintiff on behalf of the class must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.
THE LEAD PLAINTIFF PROCESS IN THE GITLAB CLASS ACTION LAWSUIT
Under the Private Securities Litigation Reform Act of 1995 (PSLRA):
- Any investor who purchased and suffered losses in GitLab stock may seek appointment as lead plaintiff in the GitLab class action lawsuit.
- A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.
- A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit.
- The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit.
- An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ELIGIBILITY CRITERIA FOR LEAD PLAINTIFF APPOINTMENT IN THE GITLAB CLASS ACTION LAWSUIT
To be eligible for appointment as the lead plaintiff in the GitLab class action lawsuit, an investor must meet the following criteria:
- Securities Acquisition: The investor must have purchased or acquired GitLab securities during the Class Period, spanning June 6, 2023, and March 4, 2024.
- Financial Losses: The investor must have suffered financial losses as a direct result of the alleged securities fraud perpetrated by GitLab and its executives.
- Typicality and Adequacy: The investor’s legal claims must be typical of those asserted on behalf of the class, and they must demonstrate their ability to adequately represent the interests of the entire class through experience, resources, and the absence of conflicts of interest.
It is crucial to note that both domestic and international investors who meet these criteria are eligible to seek appointment as the lead plaintiff in the GitLab class action lawsuit, as courts have consistently recognized the rights of non-U.S. investors in securities class actions.
