Snowflake Inc. is facing a series of new class action lawsuits filed by multiple legal firms on March 12, 2026. The litigation, brought on behalf of shareholders, alleges that the cloud-based data warehousing company made false or misleading statements concerning its business prospects and financial performance. Specifically, the complaints focus on the company’s inability to meet its long-term product revenue targets and the underlying health of its consumption-based business model.
The legal actions, announced by firms including Pomerantz LLP and Bronstein, Gewirtz & Grossman, LLC, claim that Snowflake executives misled the public regarding the impact of consumption headwinds. According to the filings, the company failed to disclose that customers were significantly reducing their usage of the platform in response to broader economic pressures and internal optimization efforts. This deceleration in consumption directly contradicted the company’s public assertions of robust and sustained growth.
A central component of the litigation is the withdrawal of Snowflake’s $10 billion product revenue target for fiscal year 2029. This goal, which had been a cornerstone of the company’s long-term guidance since its 2022 Investor Day, was recently rescinded. The lawsuits allege that Snowflake leadership, including Chief Financial Officer Mike Scarpelli and former Chief Executive Officer Frank Slootman, continued to promote this target despite internal data suggesting it was no longer achievable. The plaintiffs argue that the company’s failure to provide timely updates on the feasibility of this revenue milestone resulted in inflated valuations.
The complaints also name current Chief Executive Officer Sridhar Ramaswamy, who took the helm in early 2024. The law firms represent investors who purchased Snowflake securities during a specified class period, during which the company allegedly issued optimistic statements about its competitive position and the stability of its revenue streams. The filings suggest that Snowflake’s consumption-based model, while touted as a flexible benefit for customers, created undisclosed volatility that the company failed to accurately represent in its SEC filings and quarterly earnings calls.
As of March 12, 2026, the law firms have initiated the process of identifying lead plaintiffs for the consolidated actions. The lawsuits seek to recover damages for investors under the Securities Exchange Act of 1934. Snowflake has not yet filed a formal legal response to these specific March 12 filings. In previous regulatory disclosures, the company has stated that its financial reporting practices are sound and that it intends to defend itself against meritless litigation. The proceedings are expected to move into the discovery phase later this year in the United States District Court.