GitLab is embroiled in legal disputes after allegations of misleading investors about its AI product, Duo. A federal securities lawsuit, filed in September 2024 and amended in February 2025, claims GitLab executives overhyped AI adoption and customer demand, resulting in financial mismanagement. Additionally, two derivative lawsuits emerged, aiming to hold executives accountable. The suits reference claims from June 2023 to June 2024, as GitLab promoted Duo’s AI features, which led to a significant price increase for subscriptions during that period.
Throughout the Class Period, GitLab and those who ran it - particularly its co-founder, Chairman and Chief Executive Officer, Sytse Sijbrandij and its Chief Financial Officer, Brian Robins - touted the capabilities of the Company's artificial intelligence ('AI') features driving market demand, providing expanded monetization opportunities through its paid add-on, GitLab Duo, and supporting a 53 percent price increase of its most utilized paid offering, known as its Premium tier.
The allegations in the amended complaint cover the period from June 5, 2023 through June 3, 2024, when GitLab began rolling out Duo, which the code hosting firm describes as 'a powerful set of AI capabilities within GitLab's DevSecOps Platform' for 'suggesting code, explaining vulnerabilities, forecasting value streams, and much more.'
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