NEW YORK, June 09, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired Cloudera, Inc. (NYSE: CLDR) securities between April 28, 2017 and June 5, 2019 (the “Class Period”). Investors have until August 6, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The complaint alleges that during the Class Period, the Defendants failed to disclose adverse facts pertaining to Cloudera's business, operations, and financial condition, which were known to or recklessly disregarded by Defendants. Specifically, 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 Q4 and FY 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. Recently, Cloudera reported on June 5, 2019, 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 40% to just $5.21 per share.
If you purchased Cloudera securities during the Class Period or continue to hold shares purchased before the Class Period, 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 Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Cloudera lawsuit, please go to https://bespc.com/cldr/. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com