Citrix Systems, Inc.

  • Active

Investigation
11/19/2021

Initial Lawsuit
11/19/2021

Lawsuit Progression
03/01/2022

Investigation

  • Continous Holding
    January 22, 2020 to October 6, 2021
  • Proposed Claim
    Securities Violation

Did Citrix Systems, Inc. (CTRX) mislead investors about challenges in the transition to cloud-based products and subscription pricing models?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

The Transition Challenge

07/29/2021

Company Statement

Citrix publishes a letter to its stakeholders for its Q2 2021 financial results describing the “challenge associated with transitioning the business to [cloud] and the need to evolve [their] sales strategy to deliver more predictable results.” Citrix also announces a restructuring of the company’s sales leadership citing “significant” changes that “may cause short-term disruption before yielding tangible results.”

“Prior to these changes, we guided SaaS as a percentage of subscription bookings to be between 50-60% for this year. We now expect this range to increase to 60-70%, further impacting revenue as more is recognized vs. up-front. . . we are updating our full year 2021 guidance and plan to reset our longer-term model.“

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$99 $114.55 $-15.55 -13.57%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 11/19/2021

A Citrix Systems, Inc. (CTRX) investor filed a securities class action lawsuit on behalf of all persons or entities that purchased shares of Citrix common stock between January 22, 2020, and October 6, 2021, inclusive.

  • Filing Date
    11/19/2021
  • Class Period
    01/22/2020 to 10/06/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Bernstein Litowitz Berger & Grossman LLP
    Klausner, Kaufman, Jensen & Levinson
  • Case Title
    City of Hollywood Police Officers' Retirement System v. Citrix Systems, Inc.
  • Docket Number
    0:21-cv-62380
  • Court
    Florida Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the cloud product was substantially similar to the on-premise offering, and
(ii) the company was experiencing significant challenges transitioning customers from on-premise to the cloud.

Defendants

  • Company
    Citrix Systems, Inc.
  • Chief Executive Officer
    David Henshall
  • Chairman
    Robert M. Calderoni
  • Chief Financial Officer
    Arlen Shenkman
  • Vice President
    PJ Hough
  • Chief (Other)
    Mark Schmitz

Lawsuit progression

  • Docket Number
    0:21-cv-62380
  • Court
    Florida Southern District Court

Lead Counsel

03/01/2022

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Robbins Geller Rudman & Dowd LLP
  • Lead Plaintiff
    Fund
  • Free File
    Order for lead

Amended Complaint

04/22/2022

The lead plaintiff filed a securities class action lawsuit on behalf of all purchasers of Citrix common stock between January 22, 2020, and October 6, 2021, inclusive.

  • Updated Class Period
    01/22/2020 to 10/06/2021
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

05/27/2022

A motion to dismiss was filed with the court.

[stockdio-historical-chart symbol=”CTXS” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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