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Oklahoma City, OK (June 20, 2019) – On June 7, 2019, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Cloudera, Inc. (NYSE: CLDR). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is April 28, 2017 through June 5, 2019. More specifically, the complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Cloudera was finding it increasingly difficult to identify large enterprises interested in adopting Cloudera’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 Cloudera’s merger with Hortonworks was to generate growth through the acquisition of Hortonworks’ existing customers (as opposed to obtaining them organically); (5) the purported synergies and other benefits of the merger with Hortonworks were materially overstated; and (6) defendants’ positive statements about Cloudera’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
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.
Plaintiff seeks to recover damages on behalf of all Cloudera, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, August 6, 2019 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org