Important Notice to Elastic N.V. (ESTC) Shareholders: The Gross Law Firm Announces Securities Class Action
New York, NY, March 17, 2025
The Gross Law Firm, a leading national securities fraud law firm, today announced that it has commenced a class action lawsuit against Elastic N.V. (NYSE: ESTC) (“Elastic” or the “Company”) on behalf of shareholders who purchased or otherwise acquired Elastic securities between February 1, 2023, and November 15, 2024, inclusive (the “Class Period”).
The complaint, filed in the United States District Court for the Eastern District of New York, alleges that Elastic and certain of its executive officers and directors violated the Securities Exchange Act of 1934 by making materially false and misleading statements and/or failing to disclose material information during the Class Period.
Allegations of Misconduct
According to the complaint, Elastic made false and misleading statements and/or failed to disclose that:
- Elastic’s financial statements for the quarter ended July 31, 2023, contained material errors;
- Elastic’s internal controls over financial reporting were inadequate;
- Elastic’s revenue growth was primarily driven by one large customer;
- Elastic’s sales and marketing expenses were artificially inflated;
- Elastic’s executives were offering incentives to customers to maintain or expand their contracts.
Impact on Shareholders
As a result of this conduct, Elastic’s public filings and public statements were false and misleading throughout the Class Period, and Elastic’s stock traded at artificially inflated prices during the Class Period. When the true facts came to light, Elastic’s stock price fell significantly, causing harm to Elastic shareholders.
Impact on the World
The impact of the Gross Law Firm’s class action lawsuit against Elastic extends beyond the affected shareholders. The allegations of financial misconduct and accounting irregularities can damage Elastic’s reputation and erode investor confidence, making it more difficult for the company to attract new investors and raise capital. Additionally, the lawsuit may lead to increased regulatory scrutiny and potential fines or penalties for Elastic and its executives.
Conclusion
The Gross Law Firm’s class action lawsuit against Elastic N.V. highlights the importance of accurate and transparent financial reporting. Shareholders rely on this information to make informed investment decisions, and companies have a responsibility to provide accurate and complete information to the investing public. The Gross Law Firm will continue to vigorously pursue this case on behalf of Elastic shareholders, and we encourage any shareholders with questions or concerns to contact us for a free consultation.
If you purchased or otherwise acquired Elastic securities during the Class Period, you may be entitled to recover your losses. Please contact The Gross Law Firm as soon as possible at 212-509-1444, toll-free at 888-223-7176, or via the firm’s website at [email protected] or contact form.
About The Gross Law Firm
The Gross Law Firm is a leading national securities fraud law firm based in New York City. The firm represents investors who have suffered financial losses due to securities fraud, breaches of fiduciary duty, and other corporate misconduct. The Gross Law Firm proudly advances the interests of its clients through arbitration, litigation, and negotiated resolution. For more information, please visit www.grosslaw.com.
