Business course

Grant & Eisenhofer Files Class Action Lawsuit Against Palantir on Behalf of Institutional Investor

NEW YORK & DENVER–()–The Allegheny County Employees’ Retirement System pension fund today filed a class action lawsuit against software developer Palantir Technologies Inc. (“Palantir” or the “Company”) and certain of its senior executives.

The lawsuit, filed in federal court in the United States District Court for the District of Colorado, was filed by a leading investor law firm Grant and Eisenhofer.

The action is brought on behalf of all persons or entities that have purchased or otherwise acquired the securities of Palantir Technologies Inc. (NYSE: PLTR) between February 16, 2021 and May 6, 2022, inclusive (the “Class Period”). The action is titled: Allegheny County Employees Retirement System v. Palantir Technologies Inc., Alexander C. Karp, David Glazer and Shyam Sankar, caption: 1:22-cv-02805 (D. Co.). It is linked to the action entitled Cupat c. Palantir Technologies Inc., et al.1:22-cv-02384 (D.Co.).

Palantir builds and deploys software platforms to assist the U.S. and foreign intelligence community in counterterrorism investigations and operations. The Company has two operating segments, commercial and government, the latter primarily serving US federal government and non-US government agencies. Palantir also invests in what are called “marketable securities,” which consist of equity securities in publicly traded companies.

The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the lawsuit alleges that throughout the Class Period, the Defendants failed to disclose that: (i ) Palantir’s investments in marketable securities had a material negative impact on the company’s earnings per share (“EPS”) results; (ii) Palantir overestimated the sustainability of its government segment’s growth and revenue; and (iii) Palantir was experiencing a significant slowdown in revenue growth, particularly among its government customers, despite ongoing global conflicts and market disruptions.

Palantir has consistently described sources of geopolitical instability and other disruptions – for examplearmed conflicts, economic crises and the COVID-19 pandemic – as tailwinds for its business, as the Company’s products and services are meant to help its customers assess and respond to such disruptions.

Still, on May 9, 2022, Palantir reported Q1 Adjusted EPS of $0.02, compared to analyst estimates of $0.04 per share, noting on a conference call that the “[f]adjusted first quarter [EPS of] $0.02. . . includes a negative impact of $0.02 primarily due to unrealized losses on marketable securities. The company also disclosed that government revenue grew only 16% year-over-year for the first quarter, representing a significant slowdown in revenue growth from previous quarters, and that for the second quarter, the company forecast sales of $470 million, compared to estimates of $483.76 million.

On this news, Palantir stock price fell $2.02 per share, or 21.31%, to close at $7.46 per share on May 9, 2022.

As multiple news outlets reported that day, Palantir’s significant decline in revenue growth, particularly from its government clients, came as a surprise to investors, especially given the current geopolitical instability and… other disturbances caused by, among othersthe ongoing COVID 19 pandemic and the Russian-Ukrainian war, precisely the type of destabilizing conditions the company had previously touted as tailwinds for its business.

For investors who purchased or acquired Palantir securities during the Class Period, you are a member of this Proposed Class and may be able to seek appointment as Lead Plaintiff, which is a court-appointed representative for the Group, by complying with the relevant provisions of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). See 15 USC Section 78u-4(a)(2)(A)(i)-(iv). If you wish to act as a lead plaintiff, you must move the Court no later than November 14, 2022. You do not need to seek to become a lead plaintiff in order to share a possible recovery. You can also retain the services of a lawyer of your choice to represent you in this action.

If you would like to discuss this action or have any questions about this notice or your rights, please contact Caitlin M. Moyna at Grant & Eisenhofer at 646-722-8513, or by email at [email protected]