SAN DIEGO & PALO ALTO, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Cloudera, Inc. (NYSE: CLDR) has filed a class action complaint against Cloudera for alleged violations of the Securities and Exchange Act of 1933 pursuant to the January 2019 merger of Cloudera and Hortonworks. Cloudera is a data management and software company.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/cloudera-inc/
Cloudera Accused of Misleading Investors
According to the complaint, Cloudera issued millions of new shares of Cloudera stock to former shareholders of Hortonworks in connection with the merger and pursuant to the registration statement. Each former share of Hortonworks was exchanged for 1.305 shares of newly issued Cloudera stock. However, the registration statement failed to disclose how Cloudera was experiencing increased competition from, and loss of customers and market share to, competitors that offered a more fully integrated product. Moreover, Cloudera’s sales force was working at a competitive disadvantage, without the benefit of a clear roadmap for Cloudera to pitch to customers. As a result, Cloudera customers were delaying renewals. These undisclosed negative events, trends, and uncertainties rendered Cloudera’s reported financial and operational statements incorporated in the registration statement false and misleading. As of June 11, 2019, Cloudera's stock traded at $5.09 per share, an over 50% decline from the approximately $11 per share on the exchange date for the merger.
Cloudera Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
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.
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