According to the Complaint, Adobe Inc. creates software for document sharing and design. The Company is perhaps best-known for creating the “portable document format” (or “PDF”) file format and the “Acrobat” application for PDF editing, as well as for its “Photoshop” application for picture editing.

Adobe's competitors include Figma, a company that provides a web-based design tool. Figma experienced rapid revenue and market capitalization growth just prior to the beginning of the Class Period, and Defendants were repeatedly questioned during the Class Period about whether Figma would pose a serious threat to Adobe’s financial success. The Complaint alleges Defendants repeatedly misled investors to believe that Figma did not pose a serious threat, and in fact could actually be beneficial to Adobe as it might attract more users who would begin with Figma’s products and graduate to Adobe’s.

On September 15, 2022, Adobe announced that it would acquire Figma for $20 billion—double Figma’s valuation from just one year prior and at a multiple of 50 times Figma’s revenues.

The Complaint alleges that during the Class Period, Plaintiffs and Class members purchased Adobe common stock at artificially inflated prices created and/or maintained by Defendants’ materially false or misleading statements and omissions, and that when the truth concerning the Company was revealed to the market, Plaintiffs and class members suffered monetary damages.

On January 25, 2024, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on February 23. Defendants filed a Motion to Dismiss the amended Complaint on March 29.

On March 27, 2025, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.