According to the complaint, on May 9, 2022, Palantir issued a press release announcing its first quarter financial results and guidance for the second quarter. Palantir disclosed that government revenue grew by only 16% year-over-year for the first quarter, representing a significant slowdown in revenue growth compared to prior quarters, and that, for the second quarter, Palantir expected $470 million in sales, compared to estimates of $483.76 million.

Following this news, Palantir’s stock price fell $2.02 per share, or over 21%, to close at $7.46 per share on May 9, 2022.

The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Palantir’s investments in marketable securities were having a significant negative impact on the Palantir’s earnings per share (“EPS”) results; (ii) Palantir overstated the sustainability of its government segment’s growth and revenues; (iii) Palantir was experiencing a significant slowdown in revenue growth, particularly among its government customers, despite ongoing global conflicts and market disruptions; (iv) as a result of all the foregoing, Palantir was likely to miss consensus estimates for its first quarter 2022 EPS and second quarter 2022 sales outlook; and (v) as a result, the Palantir’s public statements were materially false and misleading at all relevant times.