NEWTOWN, Pa., June 20, 2024 (GLOBE NEWSWIRE) -- Edelson Lechtzin LLP, a leading class action law firm, is investigating securities fraud claims on behalf of all investors of Teradata Corporation (NYSE: TDC) between February 13, 2023, and February 12, 2024, inclusive (the “Class Period”).
Investors who purchased Teradata stock may move the U.S. District Court for the Southern District of California to appoint them as lead plaintiff, no later than August 13, 2024. Please contact Edelson Lechtzin LLP to discuss your investment losses at 844-696-7492, or by e-mail at elechtzin@edelson-law.com. A copy of the Class Action Complaint can be viewed HERE.
What is a Lead Plaintiff?
The lead plaintiff is a court-appointed representative of a class of purchasers of securities in a class action under the federal securities fraud laws. The lead plaintiff selects and supervises the attorneys who will represent the class in the lawsuit, and if necessary, provides testimony at trial.
Background on Teradata Corporation
Headquartered in Brentwood, California, Teradata Corporation is a software company specializing in the provision of cloud database and analytics-related software, products, and services.
The Securities Fraud Claims
The Complaint alleges that during the Class Period, Defendants made false and misleading statements about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) under Teradata’s expanded business model, which involved engagement with additional customer business units and decision-makers, transactions with Teradata’s customers took longer to finalize; (ii) Teradata overstated its ability to close customer transactions within their intended timeframes; (iii) Teradata failed to timely close several customer transactions that it had factored into its 2023 outlook for ARR growth; and (iv) as a result, Teradata was unlikely to meet its full-year 2023 Total and Public Cloud ARR expectations.
During the Barclays Global Technology Conference on December 7, 2023, Teradata’s Chief Financial Officer, Claire Bramley, mentioned that the company might face a delay in an eight-figure deal beyond Q4 2023, which could put the company at the lower end or slightly below its expected cloud Annual Recurring Revenue (ARR). On this news, Teradata’s stock price fell $2.89 per share, or 6.24%, to close at $43.40 per share on December 7. 2023.
On February 12, 2024, Teradata announced its financial results for the fourth quarter and the full year of 2023. Teradata stated that due to “deal timing issues,” the public cloud’s ARR only increased by 48%, and the total ARR increased by just 6% for the full year 2023, falling short of the Company’s expectations for these performance metrics.
During the Q4 2023 Earnings Call, Teradata’s CEO, Stephen McMillan, explained that the company faced challenges in finalizing certain transactions that would have contributed to its full-year ARR growth in 2023. McMillan attributed these delays to the increased strategic importance of Teradata to corporations and its involvement across various levels of its customers’ organizations. Due to these factors, several transactions worth $2 million or more of cloud ARR growth were pushed into 2024. On this news, Teradata’s stock price fell $10.57 per share, or 21.6%, to close at $38.22 per share on February 13, 2024.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
