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Shareholder Alert: Robbins Arroyo LLP Announces Another Complaint Filed Against Cloudera, Inc. (CLDR)

SAN DIEGO & PALO ALTO, Calif.--(BUSINESS WIRE)--

Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Cloudera, Inc. (CLDR) filed a derivative complaint against the company's officers and directors for breaches of fiduciary duties and unjust enrichment from April 28, 2017 to the present. Cloudera is a data management and software company.

If you suffered a loss as a result of Cloudera's misconduct, click here.

Cloudera Accused of Misleading Shareholders

According to the derivative complaint, from 2015-2017, Cloudera touted its 140% revenue increase and earned recognition as one of the largest global enterprises. Due to this positive growth, Cloudera raised over $258 million in gross proceeds when it went public in its initial public offering ("IPO") in April 2017. Following the IPO, Cloudera's officers and directors highlighted Cloudera's "land-and-expand" business model for growing its customer base, assuring investors of its viability and stating "the benefits…are evident in [its] improving margins and cash flow." However, these misleading positive statements were materially false and, in reality, Cloudera's "land-and-expand" strategy was a ploy to grow revenues while Cloudera's technology grew increasingly outdated, causing pricing and servicing disadvantages compared to its competitors. As a result, Cloudera had diminished sales opportunities that prevented it from generating annual positive cash flow for the future. Cloudera's adverse situation was revealed on April 3, 2018, when Cloudera provided a disappointing outlook for fiscal 2019, demonstrating a sharp deceleration in growth. On this news, Cloudera's stock price fell 40% to $13.29 per share, which is 11% less than its IPO price.

Cloudera, Inc. (CLDR) Shareholders Have Legal Options

Contact us to learn more:
Leo Kandinov
(800) 350-6003
LKandinov@robbinsarroyo.com
Shareholder Information Form

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click Here to receive free alerts from Stock Watch when companies engage in wrongdoing.

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