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SNOW.US
id: 1123

Snowflake (SNOW) 2023 Growth Cut Case

The defendant has requested the court to dismiss the case.
N.D. California
Court
5:24-cv-1234
Case number
09/16/2020
Class period Start
03/02/2022
Class period End
04/29/2024
Lead Plaintiff motion deadline

  • $SNOW stockholder filed a claim vs. Snowflake for purportedly overstating 2023 revenue growth projections.

  • In March 2022, the slashed guidance news caused $SNOW to fall 15%, losing $13.3 Billion in shareholder value for a single day!

On March 2, 2022, Snowflake (SNOW) revealed that its product revenue growth rate for 2023 was projected to be slashed to a range of 65% to 67%, far below the triple-digit growth and purportedly ongoing favorable business trends previously highlighted.

On the earnings call held on March 2, 2022, Snowflake CFO, Michael P. Scarpelli, revealed that Snowflake's customers were consuming at a reduced rate, which he blamed on “platform enhancements . . . which lowered credit consumption.”

On this news, $SNOW fell nearly 15%, losing $13.33 billion of its market capitalization just in a single day, seriously damaging investors.

Considering all highlights provided by senior management, investors have reasons to suspect Snowflake of purportedly overstating 2023 revenue growth prospects, which led to thier losses when the truth was uncovered.

The first $SNOW stockholder filed a claim vs. Snowflake over misleading in N.D. California court.

Case Type
US Securities Class Action
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03/03/2022
Filing date
02/29/2024
Lead Plaintiff Deadline
04/29/2024
Judge
Hon. P. Casey Pitts