SAN DIEGO, June 7, 2019 /PRNewswire/ -- Johnson Fistel, LLP announced that a class
action has been commenced on behalf of purchasers of Cloudera, Inc.
("Cloudera" or the "Company") (NYSE: CLDR) common stock during
the period between April 28, 2017 and
June 5, 2019 (the "Class
Period").
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact Jim
Baker at (jimb@johnsonfistel.com) at 619-814-4471. If
emailing, please include a phone number. To view a copy of the
complaint [Click here ]
[click here to join this action]
The complaint asserts claims against Cloudera, the Company's
Chief Executive Officer, Thomas J.
Reilly, Chief Financial Officer Jim
Frankola, and founder and former Chairman, Michael A. Olson, (collectively
"Defendants"). The claims arise under Sections 10(b) and
20(a) of the Securities Exchange Act of 1934.
The complaint alleges that during the Class Period, the
Defendants failed to disclose adverse facts pertaining to
Cloudera's business, operations, and financial condition, which
were known to or recklessly disregarded by Defendants.
Specifically, Defendants failed to disclose: (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. On this news, the price of Cloudera common stock
fell 40% to just $5.21 per
share.
As a result of the defendants' wrongful acts and omissions, and
the precipitous decline in the market value of Cloudera's stock,
Plaintiff and other Class members have suffered significant losses
and damages.
Plaintiff seeks to recover damages on behalf of all purchasers
of Cloudera common stock during the Class Period.
About Johnson Fistel,
LLP:
Johnson Fistel, LLP is a
nationally recognized shareholder rights law firm with offices in
California, New York, and Georgia. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits. For more information about the firm and its
attorneys, please visit https://www.johnsonfistel.com. Attorney
advertising. Past results do not guarantee future outcomes.
Contact:
Johnson
Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
[click here to join this action]
View original
content:http://www.prnewswire.com/news-releases/johnson-fistel-llp-files-class-action-suit-against-cloudera-inc-class-period-between-april-28-2017-and-june-5-2019-300864179.html
SOURCE Johnson Fistel, LLP