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 derivative complaint against the company's officers and directors for breaches of fiduciary duties and unjust enrichment from April 28, 2017 to the present. Cloudera is a data management and software company.
If you suffered a loss as a result of Cloudera's misconduct, click here.
Cloudera Accused of Misleading Shareholders
According to the derivative complaint, from 2015-2017, Cloudera touted its 140% revenue increase and earned recognition as one of the largest global enterprises. Due to this positive growth, Cloudera raised over $258 million in gross proceeds when it went public in its initial public offering ("IPO") in April 2017. Following the IPO, Cloudera's officers and directors highlighted Cloudera's "land-and-expand" business model for growing its customer base, assuring investors of its viability and stating "the benefits…are evident in [its] improving margins and cash flow." However, these misleading positive statements were materially false and, in reality, Cloudera's "land-and-expand" strategy was a ploy to grow revenues while Cloudera's technology grew increasingly outdated, causing pricing and servicing disadvantages compared to its competitors. As a result, Cloudera had diminished sales opportunities that prevented it from generating annual positive cash flow for the future. Cloudera's adverse situation was revealed on April 3, 2018, when Cloudera provided a disappointing outlook for fiscal 2019, demonstrating a sharp deceleration in growth. On this news, Cloudera's stock price fell 40% to $13.29 per share, which is 11% less than its IPO price.
Cloudera, Inc. (CLDR) Shareholders Have Legal Options
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. Click Here to receive free alerts from Stock Watch when companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar outcome.