Glancy Prongay & Murray LLP (GPM), a national shareholder rights litigation firm, has announced the filing of a class action lawsuit against SentinelOne, Inc. (SentinelOne) in the United States District Court for the Northern District of California. The lawsuit, captioned Johansson v. SentinelOne, Inc., et al., seeks to represent individuals and entities who purchased or acquired SentinelOne securities between June 1, 2022, and June 1, 2023. GPM alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (Exchange Act) by the defendants.

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Background and Allegations

The lawsuit centers around allegations of securities fraud committed by SentinelOne and its executives. It is claimed that throughout the Class Period, the defendants made false and misleading statements, while also failing to disclose material adverse facts regarding the company's business, operations, and prospects. Specifically, the complaint alleges that SentinelOne lacked effective internal controls over accounting and financial reporting, resulting in an overstatement of its Annual Recurring Revenue (ARR) and revenue guidance. These alleged actions rendered the company's positive statements about its business, operations, and prospects materially misleading.

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Market Impact and Investor Losses

On June 1, 2023, after the market closed, SentinelOne issued a press release titled "SentinelOne Announces First Quarter Fiscal Year 2024 Financial Results." In this release, the company disclosed a one-time adjustment to ARR amounting to $27.0 million or approximately 5% of total ARR. Furthermore, the company revised its fiscal year 2024 revenue guidance downward from $631 million to $640 million to a range of $590 million to $600 million. This news had an immediate negative impact on the company's stock price, causing it to plummet by over 35% to close at $13.44 per share on June 2, 2023.

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Seeking Legal Recourse

Investors who suffered losses on their SentinelOne investments during the Class Period or are interested in exploring potential claims are urged to take action. GPM has set up a webpage where individuals can submit their contact information at www.glancylaw.com/cases/sentinelone-inc/. Alternatively, investors can reach out to Charles H. Linehan, an attorney at GPM, for further inquiries. He can be contacted at 310-201-9150 or via email at shareholders@glancylaw.com. Additional information about the case can also be found on GPM's website at www.glancylaw.com.