SAN DIEGO, March 5, 2024 /PRNewswire/ -- DiCello Levitt LLP announces that purchasers or acquirers of Snowflake, Inc. ("Snowflake" or the "Company") (NYSE: SNOW) common stock between September 16, 2020, and March 2, 2022, inclusive (the "Class Period"), have until April 29, 2024 to seek appointment as lead plaintiff of the Snowflake class action lawsuit. The Snowflake lawsuit charges the Company and certain of its senior executive officers with violations of the Securities Exchange Act of 1934.

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If you purchased shares of Snowflake common stock between September 16, 2020 and March 2, 2022, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/snowflake/

You can also contact DiCello Levitt partner Brian O'Mara by calling (888) 287-9005 or at investors@dicellolevitt.com.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Allegations

The Snowflake lawsuit alleges that, throughout the Class Period, Defendants failed to disclose the following adverse facts about Snowflake's business, operations, and prospects: (a) that Snowflake had systematically oversold capacity to customers to create a misleading appearance of the demand for Snowflake's products and services; (b) that Snowflake had provided significant and unsustainable discounts to its customers to temporarily boost sales in advance of the Company's Initial Public Offering, and such discounting would require platform efficiency adjustments that negatively impacted client consumption and Snowflake's revenue and profit margins; (c) that, as a result of the above, Snowflake's customers were rolling over a material amount of unused credits (and thereby cannibalize future sales) at the end of their contracts' terms or refusing to renew their contracts at prior consumption levels or at all; (d) that, as a result of the above, Snowflake's product revenue and remaining performance obligations had been artificially inflated throughout the Class Period; and (e) that, as a result, Defendants lacked a reasonable basis for their positive statements about Snowflake's business, financials, and growth trajectory.

On March 2, 2022, Snowflake reported fourth quarter results for 2022, and announced disappointing fiscal 2023 guidance, slashing its projected product revenue growth rate for fiscal 2023 to a range of 65% to 67%, far below the rates and trends Defendants highlighted during the Class Period. On this news the price of Snowflake common stock plummeted from $264.69 per share on March 2, 2022, to close at $224.02 per share on March 3, 2022.

About DiCello Levitt

At DiCello Levitt, we are dedicated to achieving justice for our clients through securities, class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases—whether by trial, settlement, or otherwise—for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens' rights and interests. Every day, we put our reputations—and our capital—on the line for our clients.

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SOURCE DiCello Levitt LLP

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