NEW YORK, March 18, 2025 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors of the March 31, 2025 deadline to apply for the role of lead plaintiff in a class action lawsuit filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired TELUS International (Cda) Inc. (“TELUS” or the “Company”) (NYSE:TIXT) securities during the period from February 16, 2024, through August 1, 2024 (“the Class Period”).
[LEARN MORE ABOUT THE CLASS ACTION]
On May 9, 2024, before the market opened, TELUS released its Q1 2024 financial results. The release revealed that TELUS was experiencing declining revenue, including a $29 million decrease in revenue year-over-year. On the same day, in the associated earnings call, CEO Gopi Chande was asked by an analyst to clarify “what margin should look like on a go-forward basis” as margins “were down year-over-year and were below the full year guidance.” Chande answered that the margins generated by the Company’s AI offerings “can be a bit below average.” On this news, the price of TELUS shares declined by $1.41 per share, or approximately 18.15%, from $7.77 per share on May 8, 2024, to close at $6.36 on May 9, 2024.
On August 2, 2024, before the market opened, TELUS released its Q2 2024 financial results. TELUS reported revenues of $652 million, a decrease of $15 million or 2% year-over-year, which the Company attributed to lower revenues from a leading social media client and other technology clients. TELUS also reported a $23 million or 15% quarter-over-quarter adjusted EBITDA decrease and a 14.6% quarter-over-quarter reduction in adjusted EBITDA margin, from 23.3% to 19.9%. TELUS also disclosed that Jeff Puritt, then-President and CEO, was set to retire effective September 3, 2024. On an associated earnings call held the same day, Puritt disclosed the transition of the Company “towards a more technology centric and specifically AI fueled business,” “necessitates some cannibalization of our tenured and higher margin CX work.” Puritt further revealed that the Company’s AI offerings had put TELUS in the “unendurable position” of allowing the “complete eradication of margin yields in order to enjoy the revenue upside” of AI. Puritt concluded that, ultimately, the Company is “going to have to take it on the chin a little bit in terms of our historical margin profile.” On this news, the price of TELUS shares declined by $2.33 per share, or approximately 36%, from $6.48 per share on August 1, 2024, to close at $4.15 on August 2, 2024.
The complaint alleges that defendants, throughout the Class Period, failed to disclose to investors: (1) the Company’s AI Data Solutions offerings required the cannibalization of its higher-margin offerings; (2) that TELUS’ declining profitability was tied to the Company’s drive to develop AI capabilities; and (3) that TELUS’ shift toward AI put greater pressure on the Company’s margins than previously disclosed.
If you purchased or otherwise acquired TELUS securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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