Bernstein Litowitz Berger & Grossmann LLP Announces the Filing of a Securities Class Action Lawsuit Against Citrix Systems, Inc.

NEW YORK, November 19, 2021 / PRNewswire / – Renowned law firm Bernstein Litowitz Berger & Grossmann LLP (“BLB & G”) today filed a class action suit in the US District Court for the Southern District for violations of federal securities laws Florida against Citrix Systems, Inc. (“Citrix” or the “Company”) and certain of its current and former officers (collectively “Defendants”) on behalf of investors in common stock of Citrix between January 22, 2020 and October 6, 2021, including (the “Class Period”).

BLB & G filed this lawsuit on behalf of their client, City of Hollywood Police officers pension system, and the case is headed City of Hollywood Police Officer Retirement System v Citrix Systems, Inc. No. 21-cv-62380 (SD Fla.). The complaint is based on an extensive investigation and a careful assessment of the merits of this case. A copy of the complaint is available on BLB & G’s website by clicking here.

Citrix’s alleged fraud

Headquarters in Fort Lauderdale, Florida, Citrix is ​​a software company that provides users with secure remote access to computer networks. In the past, Citrix technology was installed “on-premise” and installed directly on computer servers owned and operated by customers. Customers bought licenses through a perpetual licensing model, which means that a buyer would pay upfront for lifetime access and support, with the cost of the licenses based on the number of users supported by each customer. In 2019, Citrix began a two-pronged shift in its business model. First, the company began to convert its software platform from the on-premise model to a cloud-based model. In the cloud model, Citrix hosts its software on servers owned and managed by Citrix, rather than on the customers’ servers. Second, Citrix switched to a subscription-based payment system: instead of paying for a license once per user, with the Citrix subscription model, customers had to pay annual subscription costs.

The story goes on

The lawsuit alleges that during the class action period, defendants repeatedly falsely reassured investors that the transition from on-premises to cloud product was a smooth one. Additionally, in response to the COVID-19 pandemic and the shift to remote work, Citrix created a reduced-term on-site subscription license (the “Business Continuity Licenses”) that the company offered at a discounted rate that the Defendants alleged that they would switch to cloud accounts after the one-year license expires. As a result of Defendants’ misrepresentations, Citrix common stock traded at artificially inflated prices during the class action period.

The truth about Citrix’s difficulty transitioning to the cloud has been revealed through a series of revelations. First up April 29, 2021, Citrix announced lower than expected business continuity license changes. In particular, the company stated that the business continuity licenses did not move to long-term cloud contracts as expected. Instead, many customers switched to “another short-term” on-premise license, citing the ongoing COVID-19 pandemic.

Then, on July 29, 2021, the company announced that its transition to the cloud was not as successful as the company had led investors to believe. In addition, Citrix announced a major reorganization of its sales management to increase the focus on cloud migration. According to the company, these changes were “significant and may cause disruption in the short term before tangible results are achieved”. Finally on October 6, 2021, the company announced that David Henshall resigned as President and CEO of Citrix. As a result of these disclosures, Citrix’s share price fell sharply.

If you want to act as the lead plaintiff for the class action, you must go to the court at the latest January 18, 2022, the first business day the U.S. District Court for the Southern District of Florida is open, that is 60 days after the publication date of November 19th, 2021. Any member of the proposed group may attempt to serve as the lead plaintiff through an attorney of their choice or may choose not to do anything and remain a member of the proposed group.

If you would like to discuss this action or if you have any questions about this notice or your rights or interests, please contact Scott R. Foglietta from BLB & G at 212.554.1903 or by email to [email protected].

About BLB & G

BLB & G is recognized worldwide as the leading law firm advising institutional investors on corporate governance, shareholder rights and securities disputes. Since its inception in 1983, BLB&G has built an international reputation for excellence and integrity and pioneered the use of litigation to achieve landmark governance reforms. BLB & G is unique among its peers, having achieved several of the largest and most significant securities returns in history, and bounced back over $ 33 billion on behalf of deceived investors. You can find more information about the firm on the Internet at www.blbglaw.com.

Contact

Scott R. Foglietta
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th floor
New York, New York 10020
(212) 554-1903
[email protected]

Cision

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SOURCE Bernstein Litowitz Berger & Grossmann LLP

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