NEW YORK, Nov. 19, 2021 /PRNewswire/ -- Today, prominent
investor rights law firm Bernstein Litowitz Berger & Grossmann
LLP ("BLB&G") filed a class action lawsuit for violations of
the federal securities laws in the U.S. District Court for the
Southern District of Florida
against Citrix Systems, Inc. ("Citrix" or the "Company") and
certain of its current and former senior executives (collectively,
"Defendants") on behalf of investors in Citrix common stock between
January 22, 2020 and October 6, 2021, inclusive (the "Class
Period").
BLB&G filed this action on behalf of its client,
City of Hollywood Police Officers'
Retirement System, and the case is captioned City of Hollywood Police Officers' Retirement
System v. Citrix Systems, Inc., No. 21-cv-62380 (S.D.
Fla.). The complaint is based on an extensive
investigation and a careful evaluation of the merits of this
case. A copy of the complaint is available on BLB&G's
website by clicking here.
Citrix's Alleged Fraud
Headquartered in Fort Lauderdale,
Florida, Citrix is a software company that provides users
with secure remote access to computer networks. Historically,
Citrix's technology was located "on-premise," installed directly
onto computer servers owned and operated by its customers.
Customers purchased licenses through a perpetual license model,
meaning a purchaser would pay upfront for lifetime access and
support, with the cost of the licenses based on the number of users
each customer supported. In 2019, Citrix began a two-pronged
transition of its business model. First, the Company began to
transfer its software platform from the on-premise model to a
cloud-based model. In the cloud model, Citrix hosts its
software on servers owned and maintained by Citrix, rather than on
customers' servers. Second, Citrix transitioned to a
subscription-based payment system: instead of paying once per user
for a license, Citrix's subscription model required customers to
pay a yearly subscription cost.
The complaint alleges that, throughout the Class Period,
Defendants repeatedly, falsely assured investors that the
transition from on-premise to the cloud product was going
smoothly. In addition, in response to the COVID-19 pandemic
and the shift to remote work, Citrix created a shorter duration,
on-premise subscription license (the "Business Continuity
Licenses") that the Company offered at a discounted rate, and which
Defendants claimed would transition to cloud accounts after the
one-year license expired. As a result of Defendants'
misrepresentations, Citrix common stock traded at artificially
inflated prices during the Class Period.
The truth about Citrix's difficulties transitioning to the cloud
was revealed through a series of disclosures. First, on
April 29, 2021, Citrix announced
lower than expected license conversions of the Business Continuity
Licenses. Specifically, the Company explained that the
Business Continuity Licenses did not transition to long-term cloud
contracts as expected. Instead, many customers "rolled to
another short-term" on-premise license, citing the ongoing COVID-19
pandemic.
Then, on July 29, 2021, the
Company announced that the transition to cloud was not as
successful as the Company had led investors to believe.
Further, Citrix announced a major restructuring of its sales
leadership in order to "enhance their focus on" cloud
migration. According to the Company, these changes were
"significant and may cause short-term disruption before yielding
tangible results." Finally, on October
6, 2021, the Company announced that David Henshall had stepped down as President and
CEO of Citrix. As a result of these disclosures, Citrix's
share price declined precipitously.
If you wish to serve as Lead Plaintiff for the Class, you must
file a motion with the Court no later than January 18, 2022, which is the first business day
on which the U.S. District Court for the Southern District of
Florida is open that is 60 days
after the publication date of November
19, 2021. Any member of the proposed Class may seek to
serve as Lead Plaintiff through counsel of their choice, or may
choose to do nothing and remain a member of the proposed Class.
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
Scott R. Foglietta of BLB&G at
212.554.1903, or via e-mail at scott.foglietta@blbglaw.com.
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm
advising institutional investors on issues related to corporate
governance, shareholder rights, and securities litigation.
Since its founding in 1983, BLB&G has built an international
reputation for excellence and integrity and pioneered the use of
the litigation process to achieve precedent-setting governance
reforms. Unique among its peers, BLB&G has obtained
several of the largest and most significant securities recoveries
in history, recovering over $33
billion on behalf of defrauded investors. More
information about the firm can be found online at
www.blbglaw.com.
Contact
Scott R. Foglietta
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1903
scott.foglietta@blbglaw.com
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SOURCE Bernstein Litowitz Berger & Grossmann LLP