Intuit shares fell 20 percent to $307.07 after TurboTax revenue grew 7 percent, missing the 8 percent the company had promised. A securities class action covers purchases from Aug. 22, 2025 through May 20, 2026, with a lead plaintiff deadline of Sept. 8, 2026.
Intuit shares fell 20 percent to $307.07 after TurboTax revenue grew 7 percent, missing the 8 percent the company had promised.
"Companies that provide specific guidance or expectations about future performance must disclose material information necessary to prevent those statements from being misleading," Joseph E. Levi, founding partner at Levi & Korsinsky, said.
The class action covers investors who bought Intuit securities between Aug. 22, 2025 and May 20, 2026. Shares fell $76.86, or 20.02 percent, to close at $307.07 on May 21 after the company disclosed weak tax-season results, cut its full-year TurboTax growth guidance from 8 percent to 7 percent, and announced a 17 percent workforce reduction of about 3,000 employees. Management acknowledged being "dissatisfied" with performance and said the company "lost on price" among the most price-sensitive filers earning less than $50,000 a year. The company also said TurboTax online paying units were expected to grow only 2 percent as total IRS filers were projected to decline about 30 basis points, the most significant industry-wide contraction since the post-COVID tax season.
The decline came in two stages. Intuit shares first fell $15.78, or 3.95 percent, to close at $383.93 on May 20 after Reuters reported the layoffs and the winding down of its Reno and Woodland Hills offices. The stock then dropped another $76.86 the following session after the earnings disclosure.
The complaint, filed in the U.S. District Court for the Northern District of California and captioned Baldwin v. Intuit Inc., alleges the company overstated its competitive advantages and the sustainability of its business model while losing TurboTax business to increasing competitive and pricing pressures. Intuit had projected TurboTax revenue growth of 8 percent for fiscal 2026 beginning in August 2025 and reaffirmed that figure through November 2025 and February 2026, touting "momentum across the company" and "sustained growth for years to come."
The 20 percent single-day decline reflects investor confidence erosion in Intuit's growth narrative around TurboTax, its flagship consumer product competing with H&R Block in the DIY filing market. Levi & Korsinsky, Kessler Topaz Meltzer & Check, and Glancy Prongay Wolke & Rotter are among the firms notifying investors of the deadline. There is no minimum loss amount required to participate as a class member, and eligibility is based on when shares were purchased, not whether they are still held. Investors who purchased during the class period and suffered losses may seek lead plaintiff appointment by Sept. 8, 2026, or remain absent class members eligible to share in any recovery. The deadline applies only to investors seeking to serve as lead plaintiff; class members who do not apply may still participate in any recovery without taking action before that date.
This article is for informational purposes only and does not constitute investment advice.
