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Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Cloudera, Inc. (CLDR)

NEW YORK, June 10, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Cloudera, Inc. (“Cloudera” or the “Company”) (NYSE: CLDR) in the United States District Court for the Northern District of California on behalf of those who purchased or acquired the securities of Cloudera between April 28, 2017 and June 5, 2019, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.

The Complaint alleges Defendants failed to disclose that: (i) Cloudera was finding it increasingly difficult to identify large enterprises interested in adopting the Company’s Hadoop-based platform; (ii) Cloudera needed to expend an increasing amount of capital on sales and marketing activities to generate new revenues; (iii) Cloudera had materially diminished sales opportunities and prospects and could not generate annual positive cash flows for the foreseeable future; (iv) the primary motivation for the Company’s merger with Hortonworks was to generate growth through the acquisition of Hortonworks’ existing customers (as opposed to obtaining them organically); and (v) that the purported synergies and other benefits of the merger with Hortonworks were materially overstated.

The truth began to be revealed to the market on April 3, 2018, when, in connection with its Q4 and FY 2018 financial results, the Company provided a disappointing outlook for fiscal 2019.  This news contradicted Defendants’ prior positive statements and shocked the market as it had come less than a year after Cloudera went public.  In response, the price of Cloudera common stock fell 40% to $13.29 per share.  Recently, Cloudera reported on June 5, 2019, that its first quarter revenues were $187.5 million, but that several customers had elected to “postpone renewal and expansion” of their subscription agreements.  At this time, the Company also announced that its losses from operations had ballooned to $103.8 million, roughly double the year-over-year period, and that its CEO, Defendant Reilly, would be abruptly retiring from the Company.  Following this news, the price of Cloudera common stock fell 40% to just $5.21 per share.

Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the August 6, 2019 lead plaintiff motion deadline.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

/EIN News/ --

Distribution channels: Consumer Goods, Law


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