OAKLAND, Calif.--(BUSINESS WIRE)--Gibbs Law Group announces that a class action lawsuit was filed on behalf of investors of Cloudera, Inc. (NYSE: CLDR) who purchased shares between April 28, 2017 and June 5, 2019. The lawsuit seeks to recover Cloudera investors’ losses.
Did you lose money in Cloudera? Talk with a securities attorney about recovering your losses, call: 888-410-2925 or visit: Cloudera class action lawsuit investigation.
The class action lawsuit alleges, among other things, that:
- Cloudera was having difficulty identifying large enterprises interested in its platform;
- Cloudera needed to spend increasingly more money on sales and marketing activities to generate new revenues;
- Cloudera had materially diminished sales opportunities and prospects and could not generate positive cash flows for the foreseeable future;
- The primary motivation for Cloudera’s merger with Hortonworks was to generate growth through the acquisition of Hortonworks’ existing customers; and
- The synergies and other purported benefits of the merger with Hortonworks were materially overstated.
On June 5, 2019, Cloudera reported disappointing first-quarter financial results and lowered its revenue outlook for 2020 by $90 million. Cloudera also announced that CEO Tom Reilly would be leaving the company. CNBC published an article on Cloudera’s announcements, stating “[C]loudera continues to bleed cash and is struggling to generate consistent growth, raising concerns about the future viability of its data analytics technology.”
Multiple analysts downgraded Cloudera, including Needham’s Jack Andrews, who stated,
“A CEO departure, the retraction of a near-term target financial model, lack of clarity regarding a major new product launch, and most alarmingly, a visible uptick in customer churn, cause us to reevaluate our stance.”
Following this news, shares of Cloudera plummeted more than 40% to close at $5.21 per share, causing significant harm to investors.
If you suffered a loss in Cloudera, you have until August 6, 2019, to request that the Court appoint you as lead plaintiff. You do not need to be a lead plaintiff in order to share in any recovery.
To speak privately with a securities attorney about your Cloudera losses, visit our website or contact our securities team directly at 888-410-2925.
About Gibbs Law Group
Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.
Our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” and “Consumer Protection MVP.”
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