NEW YORK, June 19, 2019 (GLOBE NEWSWIRE) — Safirstein Metcalf LLP announces that a class action has been filed against Cloudera Inc., (“Cloudera” or the “Company”) (CLDR) for the class period between April 28, 2017 and June 5, 2019, both dates inclusive, (the “Class Period”). The lawsuit was filed in the United States District Court for Northern District of California to recover damages for Cloudera investors under the Securities Exchange Act of 1934.
If you purchased shares of Cloudera during the Class Period and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com.
If you wish to serve as a 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. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and 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. Following this news, 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. Following this news, the price of Cloudera common stock fell another 40% to just $5.21 per share.
About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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