Snowflake (SNOW) Unrevealed revenue headwinds from product changes Case

Investors can submit applications for the lead plaintiff role.

N.D. California

Court

3:26-cv-1613

Case number

06/27/2023

Class period Start

02/28/2024

Class period End

04/27/2026

Lead Plaintiff motion deadline

SNOW investors filed a claim against Snowflake for not disclosing that product efficiency gains, Iceberg Tables, and tiered storage pricing were expected to reduce consumption and revenues.
After Snowflake disclosed increased revenue headwinds tied to efficiency gains, tiered storage pricing, and expected Iceberg use (and withdrew its $10 billion 2029 product revenue target), SNOW fell 18.1% on February 29, 2024, closing at $188.28 per share.
SNOW investors can join this case to be notified about potential recovery.
Case Details:

Between June 27, 2023 and February 28, 2024, Snowflake told investors that customer usage was stabilizing and improving. Executives pointed to consumption trends returning to expected levels, product developments (including work around Iceberg), and continued confidence in reaching $10 billion in product revenue by 2029.

However, during this period, investors alleged Snowflake was facing product-driven headwinds that would lower how much customers consumed and how much revenue Snowflake could generate. Snowflake allegedly failed to disclose: (1) product efficiency gains, Iceberg Tables, and tiered storage pricing were expected to have a material negative impact on consumption and revenues; (2) as a result, the company’s upbeat messaging about consumption patterns, revenues, and demand lacked a reasonable basis; and (3) these headwinds put the company’s ability to reach its $10 billion 2029 target in doubt.

Then, on February 28, 2024, the company released results and guidance and discussed that it was forecasting increased revenue headwinds associated with product efficiency gains, tiered storage pricing, and expected Iceberg usage, and it pulled back from managing expectations to its long-term $10 billion target. Additional revelations followed on February 28, 2024, including that Frank Slootman retired as CEO effective February 27, 2024. SNOW fell $41.72, closing at $188.28. By February 29, 2024, shares had dropped to $188.28, representing a total decline of 18.1% over the correction period.

Based on these events, $SNOW investors filed a claim against Snowflake, alleging the company:
It hid key revenue headwinds tied to product changes.
It promoted stabilizing consumption and growth without disclosing that efficiency gains, tiered storage pricing, and expected Iceberg usage were expected to materially reduce consumption and revenue.
It led investors to reassess Snowflake’s outlook after the updated guidance and long-term target withdrawal, causing losses.
Investors argue Snowflake misled the market about how these product changes would affect consumption and revenue, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Fraud,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

02/28/2024

Filing date

02/24/2026

Lead Plaintiff Deadline

04/27/2026

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