SAN FRANCISCO (Legal Newsline) - The firm Saxena White will lead a shareholder class action lawsuit against Atlassian, a maker of collaboration and project-management software.
The suit followed a 29% stock decline in 2022. The lead plaintiffs will be the City of Hollywood Firefighters' Pension Fund of Florida and the Oklahoma Firefighters Pension and Retirement System, and the case is being heard in California federal court.
The funds purchased or acquired 8,550 net shares and lost more than $1 million, they say. Judge William Orrick issued the order May 15 appointing them lead plaintiffs and their lawyers at Saxena White as lead counsel.
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."