NEW YORK, July 14, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been commenced on behalf of shareholders of Teradata Corporation (NYSE: TDC) and Seritage Growth Properties (NYSE: SRG). Shareholders have until the deadlines set forth below to ask the Court to serve as lead plaintiff. For more information about each case, please see the link provided.
Teradata Corporation (NYSE: TDC)
Teaching period: 13 February 2023 – 12 February 2024
Deadline for lead plaintiff: August 13, 2024
Teradata, together with its subsidiaries, provides a connected, multi-cloud data platform for enterprise analytics. In the past, Teradata primarily served its customers’ IT departments. However, as its business model and strategic goals expanded, the company increasingly began to work with other business units of its customers.
To measure the Company’s progress toward its strategic objectives, Teradata uses certain financial and performance metrics, including total annual recurring revenue (“ARR”) – or the annual value at a specific point in time of all recurring contracts, including subscription, cloud, software upgrade rights and maintenance – and, included in total ARR, public cloud ARR – or the annual value at a specific point in time of all contracts related to public cloud implementations of its cloud data platform. Accordingly, Teradata’s total ARR for a specific period is determined in significant part by the number of customer transactions the Company is able to complete during that period.
On February 13, 2023, Teradata issued a press release announcing its fourth quarter and full year 2022 financial results. The press release provided an outlook for the full year 2023, stating, “Public cloud ARR is expected to increase 53% to 57% year-over-year” and “Total ARR is expected to increase 6% to 8% year-over-year.”
Throughout the Class Period, Defendants made materially false and misleading statements about the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) as part of Teradata’s expanded business model, which included working with additional customer business units and decision makers, transactions with the Company’s customers took longer to close; (ii) Teradata thus overstated its ability to close customer transactions within the timelines anticipated as part of its expanded business model; (iii) Teradata failed to close several customer transactions on a timely basis that it had included in its 2023 ARR growth forecast; (iv) as a result, the Company was unlikely to meet its expectations for full-year 2023 total and public cloud ARR; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On December 7, 2023, defendant Claire Bramley, Teradata’s chief financial officer, revealed at a Barclays Global Technology Conference that the company had “closed an eight-figure deal that could potentially (…) be pushed out of the fourth quarter of 2023,” which would result in “the company landing at the low end of, or slightly below, the range for cloud ARR it had previously stated.”
On this news, Teradata’s stock price fell $2.89 per share, or 6.24%, to close at $43.40 per share on December 7, 2023.
Then, on February 12, 2024, Teradata announced its fourth quarter and full-year 2023 financial results. Among other things, the company stated that due to “issues with contract closing timing,” public cloud ARR only increased 48% and total ARR for the full year 2023 only increased 6%, well below the company’s previously stated expectations for these performance metrics.
In a conference call held the same day to discuss the Company’s fourth quarter and full year 2023 results (the “Fourth Quarter 2023 Earnings Call”), Teradata Chief Executive Officer Stephen McMillan (“McMillan”) confirmed that the “transaction timing issues” were related to the Company’s failure to complete certain transactions in a timely manner that would have contributed to full year ARR growth had they been completed in 2023. Specifically, Defendant McMillan alleged that “more executive-level decision makers” were required to complete these transactions because “Teradata plays an even more strategic role for enterprises, touching all levels of (its) customers’ organizations,” and that “these dynamics are causing a number of transactions to be pushed into 2024.” As a result, defendant McMillan disclosed that “there were a handful of large transactions that were postponed in December (2023), each valued at $2 million or more in cloud ARR growth.”
On this news, Teradata’s stock price fell $10.57 per share, or 21.66%, to close at $38.22 per share on February 13, 2024.
For more information about the Teradata class action lawsuit, please visit: https://bespc.com/cases/TDC
Seritage Growth Properties (NYSE:SRG)
Class period: July 7, 2022 – May 10, 2024
Deadline for lead plaintiff: August 30, 2024
On August 14, 2023, after the market closed, Seritage announced that there was a “material weakness” in the company’s internal control over financial reporting “due to a deficiency in the design of our controls over the identification of impairment indicators for investments in real estate and the documentation of verification evidence.” In addition, the deficiency related “to the failure to identify potential indicators of impairment related to development projects in a timely manner.”
On this news, Seritage’s stock price fell $0.86, or 9.67%, to close at $8.03 per share on August 15, 2023, amid unusually heavy trading volume.
Then, on May 10, 2024, after the market closed, Seritage released its financial results for the first quarter of 2024 and announced that it was “adjusting its price forecasts for some of its assets.” As a result, the gross value of the company’s asset portfolio decreased by at least $325 million.
On this news, Seritage’s stock price fell $2.54, or 27.3%, to close at $6.78 per share on May 13, 2024, amid unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company lacked effective internal controls over the identification and review of impairment indicators for real estate investments; (2) that, as a result, the Company overstated the value and projected gross proceeds of certain real estate assets; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.
For more information about the Seritage class action lawsuit, please visit: https://bespc.com/cases/SRG
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the firm, visit www.bespc.com. Attorney advertising. Past results do not guarantee similar results.
Contact information:
Bragar Eagle & Squire, PC
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com
