Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Snowflake, Inc. (SNOW)
NEW YORK, May 26, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northen District of California on behalf of all persons or entities who purchased or otherwise acquired Snowflake, Inc. (“Snowflake”, “SNOW” or the “Company”) (NYSE: SNOW) securities between May 24, 2023, and June 10, 2024, inclusive (the “Class Period”).
The Complaint alleges that Frank Slootman (“Slootman”), who was Snowflake’s Chairman and CEO from 2019 to early 2024, created a Rule 10b5-1 sales plan, which triggered stock sales when prices hit certain parameters. The Complaint continues to allege that Slootman sold approximately $223 million worth of Snowflake stock in only 46 days, right before the Company disclosed devastating news about various business challenges.
The Complaint also alleges that on February 28, 2024, CFO Scarpelli stated: “We are forecasting increased revenue headwinds associated with product efficiency gains, tiered storage pricing and the expectation that some of our customers will leverage Iceberg Tables for their storage.” The Complaint further alleges that he added: “we do expect a number of our large customers are going to adopt Iceberg formats and move their data out of Snowflake where we lose that storage revenue and also the compute revenue associated with moving that data into Snowflake.” On this news, the stock price dropped $41.72 (18.14%,) from a close of $230.00 per share on February 28, 2024 to $188.28 per share on February 29, 2024.
Investors who purchased or otherwise acquired shares of Snowflake should contact the Firm prior to the July 21, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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