Securities Class Action: Atlassian Corporation
INVESTOR ALERT: ATLASSIAN CORPORATION (NASDAQ: TEAM). Berger Montague Advises Investors to Inquire About a Securities Fraud Class Action by April 4, 2023
PHILADELPHIA, PA / February 9, 2023 – Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Atlassian Corporation (“Atlassian U.S.”) (NASDAQ: TEAM) and Atlassian Corporation Plc (“Atlassian UK,” and, together with Atlassian U.S., “Atlassian” or the “Company”) on behalf of those who purchased Atlassian U.S. ordinary shares and/or common stock between August 5, 2022 and November 3, 2022, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired Atlassian U.S. securities during the Class Period may, no later than April 4, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/atlassian-corporation/
Atlassian develops and sells collaboration and project-management software that operates both on premises and in the cloud. The Company derives a majority of its revenue from its Jira Software and Confluence software products. The Company generates revenue primarily from license subscriptions both from free users who convert to paying customers when they exceed the cap on free licenses, and from existing paying users who expand their existing subscriptions. In 2020, Atlassian began to transition its clients to the cloud, which has accounted for a rapidly growing portion of the Company’s revenues.
Investors learned the truth about the Company’s vulnerability to macroeconomic conditions and weakened outlook after the financial markets closed on November 3, 2022, when, Atlassian issued a letter to shareholders and held a conference call with analysts to discuss its financial results for the fiscal first quarter of 2023 ended September 30, 2022. In the letter to shareholders, the defendants revealed that “[b]ased on the macro headwinds,” the Company was “lowering our Cloud revenue growth outlook to a range of approximately 40% to 45% year-over-year” for fiscal year 2023. In describing the “macro impacts” on the Company, the letter to shareholders revealed that (1) the Company “saw a decrease in the rate of Free instances converting to paid plans,” calling it a “trend [that] became more pronounced” in the quarter and (2) the Company experienced “a slowing in the rate of paid user growth from existing customers.”
Following this news, the price of Atlassian stock declined almost 29% the following day, from a closing price of $174.17 per share on November 3, 2022 to a closing price of $123.73 per share on November 4, 2022.
The complaint alleges that throughout the Class Period, Atlassian overstated its financial guidance by concealing trends of slowing conversions from free users to paying customers and slowing growth in paying-user expansion. As a result, the defendants’ positive statements about the Company’s business, operations, and prospects during the Class Period were materially false and/or misleading.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., San Francisco, and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
