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Law Offices of Howard G. Smith Announces Investigation of Citrix Systems, Inc. (CTXS) on Behalf of Investors
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Rhea-AI Summary
Law Offices of Howard G. Smith has initiated an investigation into potential fiduciary duty breaches by the board of directors of Citrix Systems (CTXS). Following a transition to a cloud-based subscription model in 2019, Citrix faced setbacks as many customers reverted to short-term on-premise licenses during the pandemic. This led to significant stock drops, including a 7.6% decline on April 29, 2021, and a 13.6% fall on July 29, 2021, after the company revealed that the cloud transition was less successful than anticipated. Investors with shares acquired before January 2020 are encouraged to reach out for more information.
Positive
None.
Negative
Transition to cloud-based model has not met expectations, leading to customer retention issues.
Significant stock price declines of 7.6% on April 29, 2021, and 13.6% on July 29, 2021, impacting investor value.
Major restructuring of sales leadership may cause short-term disruption.
BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith announces that it has commenced an investigation of potential claims against the board of directors of Citrix Systems, Inc. (“Citrix” or the “Company”) (NASDAQ: CTXS) concerning whether the board of directors breached its fiduciary duties to Citrix shareholders.
In 2019, Citrix deployed a transition of its customers from an on-premise, per-user license to a cloud-based, subscription model. As customers heavily relied on secure remote access amid the COVID-19 pandemic, the Company offered a special on-premise license to “help [its] customers with their immediate business needs” at a discounted rate, expecting customers to transition to cloud accounts after the one-year term expired. Throughout 2020, Citrix claimed the transition was accelerating.
However, on April 29, 2021, Citrix announced that many customers moved on to another short-term on-premise license, citing the COVID-19 pandemic. On this news, Citrix’s stock fell $10.49, or 7.6%, to close at $128.02 per share on April 29, 2021, thereby injuring investors.
Then, on July 29, 2021, Citrix reported that the transition to cloud was not as successful as the Company had led investors to believe. Citrix announced a major restructuring of its sales leadership, warning that the changes were “significant and may cause short-term disruption before yielding tangible results.” On this news, Citrix’s stock fell $15.55, or 13.6%, to close at $99.00 per share on July 29, 2021, injuring investors further.
If you still hold Citrix shares purchased before January 2020, have information or would like to learn more about this matter, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
