Important Information for Elastic N.V. (ESTC) Investors: Rosen Law Firm Announces Class Action Lawsuit and Lead Plaintiff Deadline
New York, NY – Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Elastic N.V. (NYSE: ESTC) between May 31, 2024, and August 29, 2024, both dates inclusive (the “Class Period”), of the important April 14, 2025, lead plaintiff deadline. The lawsuit alleges that Elastic and certain of its top executives made false and misleading statements and/or failed to disclose material information during the Class Period, violating the federal securities laws.
Background on Elastic N.V. and the Class Period
Elastic N.V. is a global search technology company that provides a suite of open source software solutions for searching, observability, and security. The company’s flagship product is the Elastic Stack, which includes Elasticsearch, Kibana, Logstash, and Beats. Elastic N.V. is headquartered in Amsterdam, the Netherlands, and its American Depositary Receipts (ADRs) are traded on the New York Stock Exchange under the symbol “ESTC.”
During the Class Period, Elastic N.V. issued materially false and misleading statements regarding the company’s business, operational, and financial metrics. Specifically, Elastic N.V. failed to disclose that:
1. Elastic N.V.’s Revenue Growth Was Slowing Down
Elastic N.V. reported strong revenue growth in its Q2 2024 earnings report, which was released on May 31, 2024. However, the company’s subsequent Q3 2024 earnings report, which was released on August 25, 2024, revealed that Elastic N.V.’s revenue growth had slowed down significantly. The company reported a 2% increase in quarterly revenue, which was below analysts’ expectations of a 5% increase.
2. Elastic N.V. Was Experiencing Increased Competition
Elastic N.V. failed to disclose that it was facing increased competition from other search technology companies, such as Microsoft Corporation and Amazon Web Services. This competition was negatively impacting Elastic N.V.’s revenue growth and market share.
3. Elastic N.V. Was Experiencing Operational Challenges
Elastic N.V. failed to disclose that it was experiencing operational challenges, including difficulties in hiring and retaining talent, and issues with its Elasticsearch product. These operational challenges were negatively impacting the company’s ability to meet customer demand and were contributing to the slowdown in revenue growth.
Impact on Elastic N.V. Investors
As a result of Elastic N.V.’s false and misleading statements and/or omissions, the company’s stock price was artificially inflated during the Class Period. When the truth was revealed, the stock price dropped significantly, causing harm to investors.
Impact on the World
The impact of this lawsuit on the world may be felt in several ways:
- Increased Scrutiny on Tech Companies: This lawsuit highlights the importance of transparency and accurate disclosures in the tech industry. It serves as a reminder that companies must be truthful with investors and the public, or face the consequences.
- Increased Costs for Elastic N.V.: Elastic N.V. may face significant costs associated with the lawsuit, including legal fees and potential damages. These costs could impact the company’s financial performance and ability to invest in research and development.
- Impact on the Tech Sector: This lawsuit could impact investor sentiment towards the tech sector as a whole, potentially leading to increased volatility and uncertainty.
Conclusion
Investors who purchased securities of Elastic N.V. during the Class Period and suffered losses are encouraged to contact Rosen Law Firm to discuss their legal options. The lead plaintiff deadline for this lawsuit is April 14, 2025. Those who may have valuable information relating to this matter should contact the firm as soon as possible.
This press release is neither a solicitation nor an offer to buy securities. Rosen Law Firm is not a registered broker, dealer, investment advisor, or underwriter. This press release does not constitute legal or professional advice, and no attorney-client relationship is formed.
If you wish to review a copy of the complaint filed in this action, please contact Rosen Law Firm at 657-299-1112 or by email at [email protected] For more information about the class action, please visit
