The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Teradata Corporation (TDC) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Teradata Corporation (“Teradata” or the “Company”) (NYSE: TDC) securities between February 13, 2023 and February 12, 2024, inclusive (the “Class Period”). Teradata investors have until August 13, 2024 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On December 7, 2023, Teradata’s CFO stated that the Company had “an eight-figure deal that potentially [. . .] could get pushed out [of Q4 2023]”, which “could put [the Company] towards the low end or slightly below the range for cloud [annual recurring revenue (“ARR”)] that [it] previously gave.”

On this news, Teradata’s stock price fell $2.89, or 6.2%, to close at $43.40 per share on December 7, 2023, thereby injuring investors.

Then, on February 12, 2024, Teradata released its fourth quarter and full year 2023 financial results, revealing cloud and total ARR falling short of the Company’s original 2023 outlook due to “timing issues” and “a handful of large deals” that got pushed back into 2024. Additionally, the Company indicated that it was seeing significant declines for its on-premise solutions.

On this news, Teradata’s stock price fell $10.57, or 21.7%, to close at $38.22 per share on February 13, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) under Teradata’s expanded business model, which involved engagement with additional customer business units and decisionmakers, transactions with the Company’s customers took longer to finalize; (2) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model; (3) Teradata failed to timely close several customer transactions that it had factored into its outlook for 2023 ARR growth; (4) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Teradata securities during the Class Period, you may move the Court no later than August 13, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Teradata securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240618871363/en/

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Teradata Corporation (TDC) Investors