NEW YORK, Nov. 22, 2021 /PRNewswire/ -- Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Citrix Systems, Inc. ("Citrix") (NASDAQ: CTXS) between January 22, 2020 and October 6, 2021, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Southern District of Florida and alleges violations of the Securities Exchange Act of 1934.
Citrix is a software company that provides users with secure remote access to computer networks. Historically, Citrix's technology was located "on-premise," meaning it was installed directly onto computer servers owned and operated by its customers. The technology was purchased through a perpetual license model, meaning a purchaser would pay upfront for lifetime access and support for each user.
In 2019, prior to the Class Period, Citrix announced that it would be shifting from a perpetual license model to a subscription license payment model, as well as transitioning from a software solution previously provided on-premise to cloud-based services.
According to the complaint, Defendants willfully or recklessly made false and misleading statements to the investing public that failed to disclose that the cloud product was substantially similar to the on-premise offering, and that the Company was experiencing significant challenges transitioning customers from on-premise to the cloud.
On April 29, 2021, Citrix announced lower than expected license conversions of the Business Continuity Licenses. Specifically, the Company stated 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. As a result of these disclosures, the price of Citrix common stock declined by $10.48, or 7.6%. 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." Citrix also 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.
Finally, on October 6, 2021, after market close, the Company announced that Defendant David 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 $105.96 per share to $98.32 per share.
If you wish to serve as lead plaintiff, you must move the Court no later than January 18, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.