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Thursday, May 2, 2024

Pension sues Atlassian Corporation, alleges securities violations

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SAN FRANCISCO (Legal Newsline) — A Hollywood, Fla., firefighters' pension fund is alleging violations of federal securities laws. 

City of Hollywood Firefighters' Pension Fund, individually and on behalf of all others similarly situated, filed a complaint Feb. 3 in the U.S. District Court for the Northern District of California against Atlassian Corporation and others alleging violations of federal securities laws. 

According to the plaintiffs' complaint, Atlassian develops and sells "collaboration and project-management" software and generates revenue from license subscriptions. They claim that in the spring and summer of 2022, "macroeconomic conditions" deteriorated and caused the company's competitors to lower its revenue guidance. 

The plaintiffs further claim Atlassian failed to disclose the impact on the company, overstated its financial guidance and concealed "slowing conversions" from free users and paying customers as well as the slowing growth of "in paying-user expansion." They allege Atlassian's actions and deception caused investors to suffer from the company's 29% stock decline and that more than $7 billion "in shareholder value evaporated." 

The plaintiffs seek monetary relief, interest, trial by jury and all other just relief. They are represented by David Kaplan of Saxena White PA in Solana Beach, California and Maya Saxena and Lester Hooker of  Saxena White PA in Boca Raton, Florida. 

U.S. District Court for the Northern District of California case number 3:23-CV-00519-WHO

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