Bronstein, Gewirtz & Grossman, LLC Files Class Action Lawsuit Against Elastic N.V.
On February 17, 2025, Bronstein, Gewirtz & Grossman, LLC, a prominent law firm based in New York, NY, announced the filing of a class action lawsuit against Elastic N.V. (“Elastic” or “the Company”) (NYSE: ESTC) and certain of its officers. The complaint alleges that Elastic and its officers violated the Securities Exchange Act of 1934 by making false and misleading statements and/or failing to disclose material information regarding Elastic’s business, operations, and financial condition.
Background
Elastic is a search engine company that provides a suite of open source software solutions for managing and analyzing data. Its flagship product, Elasticsearch, is a search engine that allows users to store, search, and analyze data in near real time. The Company’s other products include Logstash, Beats, and Kibana.
The Allegations
The complaint alleges that Elastic and its officers made false and misleading statements and/or failed to disclose material information between February 26, 2021, and November 16, 2022. Specifically, the lawsuit alleges that Elastic failed to disclose that:
- Elastic’s customer base was shifting away from its traditional search business towards cloud-based offerings, which were experiencing slower growth;
- Elastic was experiencing increased competition in the open source market, particularly from Amazon Web Services and Microsoft Azure;
- Elastic’s sales and marketing efforts were not generating the expected revenue growth;
- Elastic’s financial results for the third quarter of 2022 were lower than expected;
As a result of these alleged false and misleading statements and/or omissions, Elastic’s stock traded at artificially inflated prices between February 26, 2021, and November 16, 2022, causing investors harm.
Impact on Individual Investors
If you are an Elastic investor who purchased or acquired the Company’s securities between February 26, 2021, and November 16, 2022, you may be eligible to receive compensation for your losses. The lawsuit seeks to recover damages on behalf of all such investors. To be a member of the class, you need not take any action at this time.
Impact on the World
The impact of this lawsuit on the world at large is not clear at this time. However, it does highlight the importance of transparency and accuracy in corporate disclosures. Investors rely on accurate information when making investment decisions, and companies have a legal obligation to provide that information.
Conclusion
The filing of this class action lawsuit against Elastic N.V. and certain of its officers is an important development for investors in the Company’s securities. The allegations, if proven true, could result in significant damages for those investors. The lawsuit also serves as a reminder of the importance of transparency and accuracy in corporate disclosures. Investors should stay informed about this developing situation and consult with their financial professionals for guidance.
If you have any questions or if you believe you may be affected by this lawsuit, please contact Bronstein, Gewirtz & Grossman, LLC. The firm represents investors in securities fraud class actions and other complex litigation.
Bronstein, Gewirtz & Grossman, LLC
200 Park Avenue, 16th Floor
New York, NY 10166
212-697-6484
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