SAN FRANCISCO, Nov. 29, 2021 (GLOBE NEWSWIRE) — Hagens Berman urges Citrix Systems, Inc. (NASDAQ:CTXS) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Citrix Systems, Inc. (CTXS) Securities Fraud Class Action:
The lawsuit alleges Defendants falsely assured investors that Citrix’s transition to a cloud-based subscription business was progressing well, and that the company was successfully converting short duration on-premise licenses (“Business Continuity Licenses”) to cloud accounts given the
cloud product’s significant new capabilities and tools.
In reality, (1) Citrix’s cloud product was substantially similar to its on-premise offering, and (2) the company was experiencing significant challenges transitioning customers from on-premise to cloud customers.
The truth emerged through a series of partial disclosures beginning on Apr. 29, 2021, when Citrix announced that many of the Business Continuity Licenses did not transition into long-term cloud contracts and that many customers simply rolled into another short-term on-premise license.
Then, on July 29, 2021, Citrix announced a major restructuring of its sales leadership to address transitioning of its business to the cloud. Citrix’s CEO David Henshall also admitted that the company was experiencing serious problems managing and accurately forecasting new business areas.
Finally, on Oct. 6, 2021, Citrix announced the abrupt departure of Henshall.
These events drove the price of Citrix shares sharply lower.
“We’re focused on investors’ losses and proving Citrix concealed known challenges to implementing its transition to a subscription-based cloud business,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Citrix and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Citrix should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CTXS@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895