SentinelOne Wins Dismissal of Investor Suit Over Accounting Gaffe

A federal judge dismissed a shareholder lawsuit accusing cybersecurity firm SentinelOne Inc. of overstating a key revenue metric.

The investors haven’t adequately allege that SentinelOne, which acknowledged revenue accounting errors in 2023, intended to defraud investors, Judge Haywood S. Gilliam Jr. in the US District Court for the Northern District of California said Tuesday.

“The more convincing theory is that Defendants failed to catch certain accounting errors and at most might unintentionally have misled investors” by defining the revenue metric “with less than ideal clarity,” Gilliam said.

The investor plaintiffs have a chance to amend the complaint.

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