Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired Adobe Inc. (NASDAQ: ADBE) common stock between July 23, 2021 and September 15, 2022. Adobe is a software company that offers tools on a subscription basis for, among other things, sharing documents, editing pictures, and designing web pages.
What is this Case About: Adobe Inc. (ADBE) Misled Investors Regarding its Competitor Figma
According to the complaint, during the class period, defendants repeatedly downplayed the competitive pressure Adobe was experiencing from companies like Figma, which provides a simple web-based tool for designing user interfaces. Defendants cast Figma as merely a “point” player in the wider digital design market, and maintained that Figma’s customers would eventually graduate (and switch) to Adobe’s more advanced products. In that vein, Defendants wrongly led investors to believe that Figma’s only potential threat was as a minor disruption of Adobe’s funnel for new paying customers, and they described Adobe’s “Express” app—which focuses on video and photo editing—as a simple product that was successfully filling that role. Meanwhile, Defendants concealed that Adobe’s own user-interface design app, “XD,” was the true competitor to Figma but was failing to gain traction with customers.
On September 15, 2022, Adobe announced that it would acquire Figma for $20 billion. With this announcement, investors learned for the first time that they had been misled. Adobe management, in fact, saw Figma as not only a major competitor, but as an existential threat, and Adobe’s own in-house products were not effectively serving their intended purpose. The market sent Adobe’s stock down nearly 17% and wiped out billions of dollars of investor value in a single trading day.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Adobe Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by December 19, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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