Snowflake Inc.’s directors, ex-CEO Frank Slootman, and Chief Financial Officer Michael Scarpelli allegedly overstated the company’s growth trends around its 2020 initial public offering, concealing unsustainable and deceptive business tactics and sales practices, a shareholder derivative suit filed Thursday says.
The cloud software maker’s sales tactic of systematically overselling credits for the cloud platform to clients temporarily and artificially boosted revenue and created a misleading impression of demand for Snowflake products and services, according to the suit filed in the US District Court for the District of Delaware.
Snowflake’s sales personnel allegedly also offered short-term discounts leading up ...
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