SAN DIEGO & PALO ALTO, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Cloudera, Inc. (NYSE: CLDR) filed a class action complaint on July 12, 2019, against the company for alleged violations of the Securities Exchange Act of 1934 between April 28, 2017 and June 5, 2019. Cloudera is a data management and software company. Its chief product platform is a hybrid open source software model that combines its proprietary software with open source technology like the Hadoop software.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/cloudera-inc-july-19/
Cloudera Accused of Inflating Stock Price
According to the newest complaint, Cloudera went public in an initial public offering in April 2017 for $258 million in gross proceeds. The company's registration documents highlighted its rapid historical growth and potential for positive cash flow and profit. However, the company failed to disclose how its technology had become increasingly dated, and was being surpassed by competitors that offered a more fully integrated product. In April 2018, Cloudera provided a disappointing outlook for fiscal year 2019 and revealed a sharp slowdown in its new expansion bookings. On this news, Cloudera's stock price fell 40%. In January 2019, Cloudera acquired Hortonworks. Shortly thereafter, Cloudera revealed that the merger would reduce 2020 cash flows by $125 million. On this news, Cloudera's stock price fell almost 20%. In June 2019, Cloudera announced CEO Tom Reilly's abrupt retirement as analysts discussed the abandoning of Cloudera's Hadoop-based platform as obsolete. On this news, Cloudera's stock fell 40% to close at $5.21 per share.
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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