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 duty, unjust enrichment, and waste of corporate assets from April 28, 2017 to the present. Cloudera is a data management and software company.
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Cloudera Accused of Misleading Shareholders
According to the derivative complaint, in April 2017, Cloudera held its initial public offering ("IPO"), selling shares at $15 a share and raising over $258 million in gross proceeds. Following the IPO, Cloudera's officers and directors continuously highlighted Cloudera's success and potential for customer growth with its "land and expand" model, assuring investors that Cloudera was on its way to consistent positive cash flow. Despite these assurances, in April 2018, Cloudera reported disappointing financial results for fourth quarter and fiscal year 2018. Nevertheless, its CEO still stated Cloudera was "well positioned to continue to grow." Then, in March 2019, Cloudera announced its fourth quarter and fiscal year 2019 financial results, revealing a disappointing financial prospective for the first quarter of fiscal year 2020. Cloudera's officers and directors continued to proclaim the success of the company. Finally, on June 5, 2019, Cloudera's officers and directors admitted on an earnings call that the Company was losing business and its "land and expand" plan was failing. Since this news, Cloudera's stock currently trades at $8.28, a 45% drop from its IPO price.
Cloudera, Inc. (CLDR) Shareholders Have Legal Options
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