The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Teradata Corporation (TDC)

Business Wire 13-Aug-2024 12:04 AM

The Law Offices of Frank R. Cruz reminds investors of the upcoming August 13, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Teradata Corporation ("Teradata" or the "Company") (NYSE:TDC) securities between February 13, 2023 and February 12, 2024, inclusive (the "Class Period").

If you are a shareholder who suffered a loss, click here to participate.

On December 7, 2023, Teradata's CFO stated that the Company had "an eight-figure deal that potentially [. . .] could get pushed out [of Q4 2023]", which "could put [the Company] towards the low end or slightly below the range for cloud [annual recurring revenue ("ARR")] that [it] previously gave."

On this news, Teradata's stock price fell $2.89, or 6.2%, to close at $43.40 per share on December 7, 2023, thereby injuring investors.

Then, on February 12, 2024, Teradata released its fourth quarter and full year 2023 financial results, revealing cloud and total ARR falling short of the Company's original 2023 outlook due to "timing issues" and "a handful of large deals" that got pushed back into 2024. Additionally, the Company indicated that it was seeing significant declines for its on-premise solutions.

On this news, Teradata's stock price fell $10.57, or 21.7%, to close at $38.22 per share on February 13, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) under Teradata's expanded business model, which involved engagement with additional customer business units and decisionmakers, transactions with the Company's customers took longer to finalize; (2) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model; (3) Teradata failed to timely close several customer transactions that it had factored into its outlook for 2023 ARR growth; (4) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired Teradata securities during the Class Period, you may move the Court no later than August 13, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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