NEW YORK, June 15, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Teradata Corporation ("Teradata" or the "Company") (NYSE: TDC) and certain officers. The class action, filed in the United States District Court for the Southern District of California, and docketed under 24-cv-01034-BAS-MSB, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Teradata securities between February 13, 2023 and February 12, 2024, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired Teradata securities during the Class Period, you have until August 13, 2024 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Teradata, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. Historically, Teradata primarily dealt with the information technology departments of its customers. However, as the Company expanded its business model and strategic objectives, it increasingly began to engage with additional customer business units.
To measure the Company's progress in achieving its strategic objectives, Teradata utilizes certain financial and performance metrics including Total Annual Recurring Revenue ("ARR")—or the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance—and, included within Total ARR, Public Cloud ARR—or the annual value at a point in time of all contracts related to public cloud implementations of its cloud data platform. Accordingly, Teradata's Total ARR for a certain time period is determined, in significant part, by the number of customer transactions the Company is able close in that period.
On February 13, 2023, Teradata issued a press release reporting its Q4 and full year 2022 financial results. In providing an outlook for the full-year 2023, the press release stated that "Public cloud ARR is expected to increase in the range of 53% to 57% year-over-year" and "Total ARR is expected to increase in the range of 6% to 8% year-over-year."
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model; (iii) Terada failed to timely close several customer transactions that it had factored into its outlook for 2023 ARR growth; (iv) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.
On December 7, 2023, at a Barclays Global Technology Conference Teradata's Chief Financial Officer Defendant Claire Bramley revealed that the Company 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%, to close at $43.40 per share on December 7, 2023.
Then, on February 12, 2024, Teradata announced its Q4 and full year 2023 financial results. Among other things, the Company stated that due to "deal timing issues" public cloud ARR increased by only 48% and total ARR increased by only 6% for the full year 2023, falling well short of the Company's previously issued expectations for these performance metrics.
On a conference call held that same day to discuss the Company's Q4 and full year 2023 results (the "Q4 2023 Earnings Call"), Teradata's Chief Executive Officer Defendant Stephen McMillan ("McMillan") confirmed that the "deal timing issues" related to the Company's failure to timely finalize certain transactions that would have contributed to full year ARR growth if they had been closed in 2023. Specifically, Defendant McMillan claimed that because "Teradata is becoming even more strategic to corporations and touching all levels of [its] customers' organizations," there were "more executive decision makers" required to close these deals and that "[t]hese dynamics cause a number of transactions to move into 2024." As a result, Defendant McMillan revealed that "there was a handful of large deals that slipped out of December [2023] and each were worth $2 million or more of cloud ARR growth."
On this news, Teradata's stock price fell $10.57 per share, or 21.66%, to close at $38.22 per share on February 13, 2024.
As a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities, Plaintiff and other Class members have suffered significant losses and damages.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
