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Citrix Systems, Inc.


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Florida on behalf of those who acquired Citrix Systems, Inc. (“Citrix” or the “Company”) (NYSE: CTXS) common stock from January 22, 2020 through October 6, 2021, inclusive (the “Class Period”). Investors have until January 18, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
Citrix is a software company that provides users with secure remote access to computer networks. Historically, Citrix’s technology was located “on-premise,” meaning it was installed directly onto computer servers owned and operated by its customers. The technology was purchased by seat through a perpetual license model, meaning a purchaser would pay upfront for lifetime access and support for each user. Early in the Class Period, in response to COVID-19 and the shift to remote work, Citrix experienced a boost in sales. That boost was driven in part by the Company’s decision to offer a shorter duration, on-premise license (the “Business Continuity Licenses”). The Company offered the Business Continuity Licenses at a discounted rate and expected that most customers would transition to cloud accounts after the one-year license expired.
 
On April 29, 2021, Citrix announced lower than expected license conversions of the Business Continuity Licenses. Specifically, the Company explained that the Business Continuity Licenses did not transition to long-term cloud contracts as expected. Instead, many customers “rolled to another short-term” on-premise license, citing the ongoing COVID-19 pandemic. On this news, Citrix’s stock price declined by $10.49 per share, or approximately 7.6%, from $138.51 per share to close at $128.02 per share on April 29, 2021.
 
On July 29, 2021, the Company reported that, despite prior assurances, the transition to cloud was not as successful as the Company had led investors to believe. Specifically, Citrix cited “the challenge associated with transitioning the business to [cloud] and the need to evolve our sales strategy to deliver more predictable results.” Further, Citrix announced a major restructuring of its sales leadership in order to “enhance [its] focus on” cloud migration. According to the Company, these changes were “significant and may cause short-term disruption before yielding tangible results.” On this news, Citrix’s stock price declined by $15.55 per share, or approximately 13.6%, from $114.55 per share to close at $99.00 per share on July 29, 2021.
 
On October 6, 2021, after markets closed, the Company announced that Defendant Henshall had stepped down as President and Chief Executive Officer (“CEO”) of Citrix. On this news, Citrix’s stock price declined by $1.75 per share, or approximately 1.7%, from $105.96 per share to close at $104.21 per share on October 7, 2021.
 
The lawsuit alleges throughout the Class Period, Defendants repeatedly, falsely assured investors that the transition from on-premise to the cloud product was going smoothly. In addition, in response to the COVID-19 pandemic and the shift to remote work, Citrix created the Business Continuity Licenses that the Company offered at a discounted rate, and which Defendants claimed would transition to cloud accounts after the one-year license expired. As a result of Defendants’ misrepresentations, Citrix common stock traded at artificially inflated prices during the Class Period.
 

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