BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Cloudera, Inc. (“Cloudera” or the “Company”) (NYSE: CLDR) securities between April 28, 2017 and June 5, 2019, inclusive (the “Class Period”). Cloudera investors have until August 6, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Cloudera investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On June 5, 2019, the Company reported $103.8 million losses from operations for first quarter 2020, roughly double the year-over-year period. The Company disclosed that it was losing business despite its recent merger with Hortonworks, Inc. and that it suffered an elevated dollar churn rate of 15%. Moreover, the Company announced the abrupt retirement of its Chief Executive Officer.
On this news, the Company’s share price fell $3.59, or nearly 41%, to close at $5.21 on June 6, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) Cloudera was finding it increasingly difficult to identify large enterprises interested in adopting the Company's Hadoop-based platform; (2) Cloudera needed to expend an increasing amount of capital on sales and marketing activities to generate new revenues; (3) Cloudera had materially diminished sales opportunities and prospects and could not generate annual positive cash flows for the foreseeable future; (4) 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); (5) that the purported synergies and other benefits of the merger with Hortonworks were materially overstated; and (6) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
If you purchased shares of Cloudera, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at 215-638-4847, toll-free at 888-638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.