Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of Cloudera Inc., (“Cloudera” or the “Company”) (NYSE: CLDR) between April 28, 2017, and June 5, 2019. The lawsuit seeks to recover Cloudera shareholders’ investment losses.
If you purchased Cloudera Inc., securities, and/or would like to discuss your legal rights and options, please click “Join Class Action” above.
New York, New York—Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of shareholders of Cloudera Inc., (“Cloudera” or the “Company”) (NYSE: CLDR) between April 28, 2017, and June 5, 2019 both dates inclusive, (the “Class Period”). The lawsuit filed in the United States District Court for the Northern District of California to recover damages for Cloudera investors under the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff, you must move the Court no later than August 6, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
According to the lawsuit, throughout the Class Period, Defendants failed to disclose that: (i) Cloudera was finding it increasingly difficult to identify large enterprises interested in adopting the Company’s Hadoop-based platform; (ii) Cloudera needed to expend an increasing amount of capital on sales and marketing activities to generate new revenues; (iii) Cloudera had materially diminished sales opportunities and prospects and could not generate annual positive cash flows for the foreseeable future; (iv) the primary motivation for the Company’s merger with Hortonworks was to generate growth through the acquisition of Hortonworks’ existing customers (as opposed to obtaining them organically); and (v) that the purported synergies and other benefits of the merger with Hortonworks were materially overstated.
The truth began to be revealed to the market on April 3, 2018, when, in connection with its Fourth Quarter and Fiscal Year 2018 financial results, the Company provided a disappointing outlook for fiscal 2019. This news contradicted Defendants’ prior positive statements and shocked the market as it had come less than a year after Cloudera went public. In response the price of Cloudera Common Stock fell 40% to $13.29 per share.
Then on June 5, 2019, Cloudera reported that its first quarter revenues were $187.5 million, but that several customers had elected to “postpone renewal and expansion” of their subscription agreements. At this time, the Company also announced that its losses from operations had ballooned to $103.8 million, roughly double the year-over-year period, and that its CEO, Defendant Reilly, would be abruptly retiring from the Company. On this news, the price of Cloudera common stock fell 40% to just $5.21 per share.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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