Guidewire Software Inc.

Case Details

Class Period: March 6, 2019 - March 4, 2020
Date Filed: July 24, 2020
Case Number: 3:20-cv-05038
Jurisdiction: California Northern District Court
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Case Summary

Guidewire provides enterprise-level software systems for the property and casualty (“P&C”) insurance industry. During the Class Period, Defendants represented to investors that Guidewire was well-positioned to capitalize on a shift in the P&C insurance industry away from on-premise software systems to software systems provided over the cloud. Defendants touted the “robust” demand that existed for Guidewire’s cloud-based products and assured investors that customer demand was “enduring and broad-based across most or all segments of the market.” Defendants emphasized that the Company had “demonstrated particular success with our cloud and digital initiatives,” and that “100% of Guidewire customers will make the decision to move to the Guidewire Cloud.”

Defendants further touted the demand for Guidewire’s cloud offering by reporting, at the end of each quarter, that cloud sales represented a substantial and growing percentage of the Company’s overall sales. In addition to touting strong demand for Guidewire’s cloud offerings, Defendants assured investors that customer demand remained strong across the Company’s entire product offering – i.e., including its legacy on-premise business – underscoring that “there still is considerable interest in our self-managed platform.”