#United States #New York #Class Action #Pomerantz LLP #Elastic N.V.

Pomerantz Law Firm Initiates Class Action Against Elastic N.V.

In a significant development for investors, the Pomerantz Law Firm has announced the filing of a class action lawsuit against Elastic N.V., which trades under the ticker symbol ESTC on the NYSE. This lawsuit targets not only the company itself but also specific officers associated with Elastic. It has been recorded in the United States District Court for the Eastern District of New York under the docket number 25-cv-00785.

The class action is being pursued on behalf of all individuals and entities who purchased or acquired Elastic securities between May 31, 2024, and August 29, 2024. The primary aim of the lawsuit is to recover damages that may have arisen from alleged violations of federal securities laws committed by the defendants. The legal framework invokes Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 as well as Rule 10b-5, alleging that the company's public statements conveyed a misleading picture of its financial health and operational stability during the specified period.

Investors who bought Elastic securities during the aforementioned class period are urged to act quickly, as the deadline to request appointment as Lead Plaintiff is April 14, 2025. Detailed complaint documents are available through the Pomerantz Law Firm's official website at www.pomerantzlaw.com. Potential class members interested in discussing the lawsuit can reach out to Danielle Peyton at [email protected] or via phone at 646-581-9980.

About Elastic N.V.

Known as a leader in search technology, Elastic positions itself as an Artificial Intelligence (AI) company specializing in data-driven insights. The company offers a range of solutions across numerous sectors, categorized mainly into Search, Observability, and Security. Its platform is available both as a cloud-managed service and as self-hosted software.

Elastic's sales efforts primarily target the Americas and extend internationally into Europe, the Middle East, and Africa. Notably, its operations in the United States have consistently accounted for the bulk of the company's revenue. In fiscal year 2024 alone, U.S. revenues exceeded $730 million, approximately 58% of Elastic's total revenue of $1.267 billion.

On May 30, 2024, Elastic disclosed its fourth quarter financial results, alongside revenue guidance for fiscal year 2025, which projected substantial year-over-year growth. However, the lawsuit claims that throughout the class period, Elastic’s leadership made misleading promises concerning its operational capacity and sales growth. Key concerns raised included:

• - Significant changes to sales operations, particularly affecting customer segments in the Americas.
• - The negative impact of these operational adjustments disrupted sales, underscoring the instability within the company.

Furthermore, the lawsuit asserts that these issues led to inflated projections concerning Elastic’s ability to meet its revenue guidance for fiscal year 2025. On August 29, 2024, after issuing disappointing financial results, the company drastically revised its revenue estimates for fiscal year 2025 to a lower range than previously forecasted due to unexpected changes in customer commitments stemming from the segmentation shifts.

The fallout from these disclosures was severe, with Elastic’s stock plunging by over $27 per share—a decrease of 26.49%—to around $76.19 as of August 30, 2024.

Conclusion

The Pomerantz Law Firm’s class action lawsuit underscores the critical importance of transparency and accuracy in corporate disclosures. The firm, recognized for its expertise in corporate and securities litigation, has a noteworthy history of advocating for victims of securities fraud and corporate malfeasance. Investors unhappy with their investments in Elastic during the period in question are encouraged to explore their options for joining this class action to seek the justice they deserve.

For more information on how to navigate the class action process, investors should consult legal professionals and visit the Pomerantz Law Firm's website for additional resources.