Snowflake Investors Face Portfolio Losses from Alleged Fraud

Institutional holders of Snowflake stock during class period may seek lead plaintiff status in securities lawsuit

Published on Mar. 5, 2026

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Institutional investors who held Snowflake Inc. (NYSE: SNOW) stock between June 27, 2023 and February 28, 2024 may be eligible to serve as lead plaintiffs in a securities class action lawsuit against the company. The lawsuit alleges that Snowflake and certain officers made materially misleading statements about the company's consumption patterns, product revenue growth, and $10 billion revenue target for 2029, which artificially inflated the stock price. When Snowflake disclosed lower-than-expected growth and withdrew the 2029 target, the stock declined, impacting institutional portfolios.

Why it matters

This case highlights the importance of institutional investors evaluating available legal remedies when portfolio holdings suffer losses due to alleged securities fraud. Serving as lead plaintiff allows an institutional investor to oversee the litigation strategy and ensure the class recovery is maximized, with no out-of-pocket costs as counsel fees are paid from any recovery obtained.

The details

The securities class action alleges that Snowflake and its officers made misleading statements about consumption patterns, product revenue growth, and a $10 billion revenue target for 2029, when in reality the company was facing headwinds from product efficiency improvements, open-source table formats, and volume-based storage discounts that were eroding the consumption-based revenue model. When Snowflake disclosed lower-than-expected growth and withdrew the 2029 target, the stock price declined by $41.72 per share, or 18.14%.

  • The class period is from June 27, 2023 through February 28, 2024.
  • The court has set April 27, 2026 as the deadline to apply for lead plaintiff appointment.

The players

Snowflake Inc.

A cloud-based data warehousing company that provides a platform for data storage, processing, and analytics.

Levi & Korsinsky, LLP

A law firm that provides counsel to institutional investors evaluating lead plaintiff opportunities in securities class actions.

Joseph E. Levi, Esq.

An attorney at Levi & Korsinsky, LLP who is representing institutional investors in this case.

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What they’re saying

“Institutional investors play a critical role in securities class actions. Their participation as lead plaintiff helps ensure vigorous prosecution of claims and meaningful accountability for the benefit of all class members.”

— Joseph E. Levi, Esq., Attorney, Levi & Korsinsky, LLP (PRNewswire)

What’s next

The judge will decide on April 27, 2026 whether to allow an institutional investor to serve as the lead plaintiff in the case.

The takeaway

This case highlights the importance of institutional investors carefully evaluating their legal options when portfolio holdings suffer losses due to alleged securities fraud. Serving as lead plaintiff can help maximize recoveries for the benefit of all class members.