NEW YORK, June 16, 2023 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against SentinelOne, Inc. (“SentinelOne” or the “Company”) (NYSE: S), and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 23-cv-02982, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired SentinelOne securities between June 1, 2022 and June 1, 2023, inclusive (the “Class Period”). Plaintiff pursues claims against the Defendants under the Securities Exchange Act of 1934 (“Exchange Act”).
If you are a shareholder who purchased or otherwise acquired SentinelOne securities during the Class Period, you have until August 7, 2023 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com.  To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.Â
 [Click here for information about joining the class action]
SentinelOne is a cybersecurity company that claims to have pioneered the world’s first AI-powered Extended Detection and Response platform to make cybersecurity defense truly autonomous. The Company claims its Singularity Platform instantly defends against cyberattacks, performing at a faster speed, greater scale, and higher accuracy than otherwise possible from humans. The Company’s fiscal year 2023 ended January 31, 2023.
SentinelOne claims that its “Annualized Recurring Revenue” or “ARR” is a key business metric. The Company defines ARR as “the annualized revenue run rate of our subscription and capacity contracts at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us.”
The Complaint alleges that, throughout the Class Period, 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 failed to disclose to investors: (i) that the Company lacked effective internal controls over accounting and financial reporting; (ii) that, as a result, the Company’s ARR was overstated; (iii) that, as a result, the Company’s guidance was overstated; and (iv) that, as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On June 1, 2023, after the market closed, SentinelOne published a press release titled “SentinelOne Announces First Quarter Fiscal Year 2024 Financial Results.” Therein, the Company disclosed that “[a]s a result of a change in methodology and correction of historical inaccuracies, which we further describe in our letter to shareholders, we made a one-time adjustment to ARR of $27.0 million or approximately 5% of total ARR.” The Company also revised its fiscal year 2024 revenue guidance downward to a range of $590 million to $600 million from a range of $631 million to $640 million. In a shareholder letter published the same day, SentinelOne further explained that “we . . . discovered historical upsell and renewal recording inaccuracies relating to ARR on certain subscription and consumption contracts, which are now corrected” and that “[w]e are applying a comparable estimated adjustment to the remaining quarters in fiscal year 23, which we believe is a reasonable approximation of the impact in those periods.”Â
On this news, SentinelOne’s stock price fell $7.28 per share, or more than 35%, to close at $13.44 per share on June 2, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
