Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Teradata Corporation (“Teradata” or the “Company”) (NYSE: TDC) securities between February 13, 2023 and February 12, 2024, inclusive (the “Class Period”). Teradata investors have until August 13, 2024 to file a lead plaintiff motion.
Investors suffering losses on their Teradata investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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) Terada 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.
If you purchased Teradata securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240618236038/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
