Thu Sep 19 10:07:00 UTC 2024: ## GitLab Faces Class Action Lawsuit Over Alleged Misleading Statements About AI Features
**San Diego, CA – September 19, 2024** – Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against GitLab Inc. (NASDAQ: GTLB), alleging the company made false and misleading statements about its AI capabilities and financial performance.
The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that GitLab misled investors during the period between June 6, 2023, and March 4, 2024, by exaggerating its AI features and market demand for them.
The complaint alleges that GitLab falsely presented itself as having reliable information about its AI development and optimization capabilities, while failing to disclose the lack of market demand for its AI features and the increasing costs associated with its Chinese joint venture, JiHu, and its annual company-wide summit.
On March 4, 2024, GitLab issued lower-than-expected guidance for 2025, attributing it to the time needed to “build pipeline and close deals on new products.” This announcement caused GitLab’s stock price to plummet by nearly 21%, according to the lawsuit.
Investors who purchased or acquired GitLab securities during the class period have until November 4, 2024, to seek appointment as lead plaintiff in the lawsuit. The lead plaintiff will represent all other class members in directing the lawsuit.
Robbins Geller, a leading law firm representing investors in securities fraud cases, encourages investors who suffered losses to contact them for more information.
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