NEW YORK, July 12, 2019 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Cloudera, Inc. (“Cloudera” or the “Company”) (NYSE: CLDR) and certain of its officers. The class action, filed in United States District Court, for the Northern District of California, and indexed under 19-cv-04007, is on behalf of a class consisting of all persons and entities other than Defendants who purchased, or otherwise acquired Cloudera securities between April 28, 2017 and June 5, 2019, inclusive (the “Class Period”). The claims asserted herein are alleged against Cloudera, the Company’s former Chief Executive Officer (“CEO”), Thomas J. Reilly, Chief Financial Officer (“CFO”), Jim Frankola, and Michael A. Olson, the Company’s founder, and former Chairman, and arise under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and SEC Rule 10b-5, 17 C.F.R. § 240.10b-5, promulgated thereunder.
If you are a shareholder who purchased Cloudera securities during the class period, you have until August 6, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Cloudera is a software company specializing in the provision of data management, machine learning, and advanced analytical tools to businesses. Its chief product platform is a hybrid open source software, or “HOSS,” model which combines the Company’s proprietary software with open source technology, most notably the Apache Software Foundation’s (“ASF”) open-source Hadoop software. The Company offers a suite of applications through its HOSS platform that allows its customers, generally including large enterprises, to collect, store, organize and analyze large amounts of data to improve their businesses.
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 on April 3, 2018, when, in connection with its fourth quarter (“Q4”) and full year (“FY”) 2018 financial results, the Company provided a disappointing outlook for fiscal 2019 along with missed revenue numbers. This news contradicted defendants’ prior positive statements and were all the more surprising as they had come less than a year after Cloudera had gone public.
On this news, the price of Cloudera common stock fell over 40% to $13.29 per share on abnormally high volume of nearly 28 million shares on April 4, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby