Kehoe Law Firm, P.C. is investigating whether certain executive officers and directors of Autodesk, Inc. (“Autodesk” or the “Company”) (NASDAQ:ADSK) breached their fiduciary duties by failing to manage Autodesk in an acceptable manner and whether Autodesk and its shareholders were harmed as a result.
Key Issues of the Breach of Fiduciary Duties Investigation
On April 1, 2024, Autodesk announced that it was “. . . unable to file its Annual Report on Form 10-K for the year ended January 31, 2024 . . . within the prescribed time period, without unreasonable effort or expense.”
Further, the Company stated that “[a]fter the Company’s earnings release on February 29, 2024, information was brought to the attention of management, which promptly informed the Audit Committee . . . of the Board of Directors of the Company, that caused the Committee to commence an internal investigation with the assistance of outside counsel and advisors, regarding the Company’s free cash flow and non-GAAP operating margin practices.”
On April 16, 2024, Autodesk announced it would “. . . not file its Annual Report on Form 10-K for the year ended January 31, 2024 . . . within the 15-day extension period contemplated by Rule 12b-25(b) under the Securities Exchange Act of 1934, as amended, due to the ongoing investigation. Accordingly, the Company expects to receive a notice from The Nasdaq Stock Market . . . that it is not in compliance with the timely filing requirement for continued listing under Nasdaq Listing Rule 5250(c)(1).”
On April 25, 2024, Autodesk reported that “[o]n April 19, 2024, the Company received a notice . . . from The Nasdaq Stock Market LLC . . . notifying the Company that, because [Autodesk] is delinquent in filing its Form 10-K, the Company no longer complies with Nasdaq Listing Rule 5250(c)(1) . . ., which requires companies with securities listed on Nasdaq to timely file all required periodic reports with the SEC.”
On June 3, 2024, Autodesk announced that it had reassigned its Chief Financial Officer (“CFO”), after an internal accounting investigation around treatment of its free cash flow and operating margins.
Autodesk also “. . . disclosed its practice of incentivizing customers to adopt multiyear upfront billing arrangements. It has also acknowledged that discounted multiyear upfront contracts reduce revenue and lower billings in out years. Though prior to fiscal year 2024, the company did not quantify free cash flow attributable to multiyear upfront billings, it has noted the contribution of upfront collections to fluctuations in the company’s quarterly reported long-term deferred revenue.”
Investors of Autodesk Stock: Learn More About the Investigation and Your Legal Options
If you are an Autodesk investor and want to learn more about the investigation or discuss potential legal claims, please send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation legal evaluation.
About Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side class action law firm specializing in securities fraud, breaches of fiduciary duties, and corporate misconduct. Collectively, the firm’s partners have served as Lead Counsel or Co-Lead Counsel in high-profile cases that have recovered more than $10 billion for both institutional and individual investors.
Our class action legal services are on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.
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