RADNOR, Pa., July 26, 2024 (GLOBE NEWSWIRE) — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Southern District of California against Teradata Corporation (“Teradata”) (NYSE: TDC). The action charges Teradata with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Teradata’s materially misleading statements and omissions to the public, Teradata’s investors have suffered significant losses. The lead plaintiff deadline is August 13, 2024.
If you suffered Teradata losses, you may CLICK HERE or go to: https://www.ktmc.com/new-cases/teradata-corporation?utm_source=PR&utm_medium=link&utm_campaign=tdc&mktm=r
You can also contact attorney Jonathan Naji, Esq. of Kessler Topaz by calling (484) 270-1453 or by email at info@ktmc.com.
DEFENDANTS’ ALLEGED MISCONDUCT
On February 13, 2023, Teradata issued a press release reporting its fourth quarter and full year 2022 financial results, and provided an outlook for the full year 2023. In its outlook for 2023, Teradata stated that its “Public cloud [Annual Recurring Revenue] is expected to increase in the range of 53% to 57% year-over-year” and “Total [Annual Recurring Revenue] is expected to increase in the range of 6% to 8% year-over-year.” Annual Recurring Revenue, or ARR, is the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance—and is determined, in significant part, by the number of customer transactions the company is able close in that period.
On December 7, 2023, at a Barclays Global Technology Conference, Teradata’s CFO revealed that Teradata had “an eight-figure deal that potentially [. . .] could get pushed out [of Q4 2023],” the effect of which “could put [the company] towards the low end or slightly below the range for cloud ARR that [it] previously gave.” On this news, Teradata’s stock price fell $2.89 per share, or 6.24%, from a close of $46.29 per share on December 6, 2023, to close at $43.40 per share on December 7, 2023.
Finally, on February 12, 2024, Teradata announced its fourth quarter and full year 2023 financial results. Among other things, Teradata stated that public cloud ARR increased by only 48% for full year 2023, falling well short of the company’s previously issued guidance for this performance metric, and disclosed that total ARR increased by only 6% for the full year 2023, which was at the low end of its guidance. Teradata’s CEO attributed these disappointing results to “deal timing issues”—a concern the company was purportedly aware of when it issued its guidance back in February 2023, and that it claimed it was on top of as of June 2023. Indeed, after acknowledging the existence of these issues, the company had continuously reaffirmed its February 12, 2023 guidance. On this news, Teradata’s stock price fell $10.57 per share, or 21.66%, from a close of $48.79 per share on February 12, 2024, to close at $38.22 per share on February 13, 2024.
WHAT CAN I DO?
Teradata investors may, no later than August 13, 2024, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Teradata investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Teradata, Ostrander v. Teradata Corporation, et al., Case No. 24-cv-01034, is filed in the United States District Court for the Southern District of California.
CLICK HERE TO SIGN UP FOR THE CASE OR GO TO: https://www.ktmc.com/new-cases/teradata-corporation?utm_source=PR&utm_medium=link&utm_campaign=tdc&mktm=r
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
info@ktmc.com
May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes.
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