NEW YORK, July 06, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Teradata Corporation (NYSE: TDC), and Seritage Growth Properties (NYSE: SRG). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Teradata Corporation (NYSE: TDC)
Class Period: February 13, 2023 - February 12, 2024
Lead Plaintiff Deadline: August 13, 2024
Teradata, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. Historically, Teradata primarily dealt with the information technology departments of its customers. However, as the Company expanded its business model and strategic objectives, it increasingly began to engage with additional customer business units.
To measure the Company’s progress in achieving its strategic objectives, Teradata utilizes certain financial and performance metrics including Total Annual Recurring Revenue (“ARR”)—or the annual value at a point in time of all recurring contracts, including subscription, cloud, software upgrade rights, and maintenance—and, included within Total ARR, Public Cloud ARR—or the annual value at a point in time of all contracts related to public cloud implementations of its cloud data platform. Accordingly, Teradata’s Total ARR for a certain time period is determined, in significant part, by the number of customer transactions the Company is able close in that period.
On February 13, 2023, Teradata issued a press release reporting its Q4 and full year 2022 financial results. In providing an outlook for the full-year 2023, the press release stated that “Public cloud ARR is expected to increase in the range of 53% to 57% year-over-year” and “Total ARR is expected to increase in the range of 6% to 8% year-over-year.”
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model; (iii) Teradata failed to timely close several customer transactions that it had factored into its outlook for 2023 ARR growth; (iv) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On December 7, 2023, at a Barclays Global Technology Conference Teradata’s Chief Financial Officer Defendant Claire Bramley revealed that the Company had “an eight-figure deal that potentially [. . .] could get pushed out [of Q4 2023]”, the effect of which “could put [the Company] towards the low end or slightly below the range for cloud ARR that [it] previously gave.”
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 Q4 and full year 2023 financial results. Among other things, the Company stated that due to “deal timing issues” public cloud ARR increased by only 48% and total ARR increased by only 6% for the full year 2023, falling well short of the Company’s previously issued expectations for these performance metrics.
On a conference call held that same day to discuss the Company’s Q4 and full year 2023 results (the “Q4 2023 Earnings Call”), Teradata’s Chief Executive Officer Defendant Stephen McMillan (“McMillan”) confirmed that the “deal timing issues” related to the Company’s failure to timely finalize certain transactions that would have contributed to full year ARR growth if they had been closed in 2023. Specifically, Defendant McMillan claimed that because “Teradata is becoming even more strategic to corporations and touching all levels of [its] customers’ organizations,” there were “more executive decision makers” required to close these deals and that “[t]hese dynamics cause a number of transactions to move into 2024.” As a result, Defendant McMillan revealed that “there was a handful of large deals that slipped out of December [2023] and each were worth $2 million or more of 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 on the Teradata class action go to: https://bespc.com/cases/TDC
Seritage Growth Properties (NYSE: SRG)
Class Period: July 7, 2022 - May 10, 2024
Lead Plaintiff Deadline: August 30, 2024
On August 14, 2023, after the market closed, Seritage revealed that there was a “material weakness” in the Company’s internal control over financial reporting “due to a deficiency in the design of our control over the identification of impairment indicators for investments in real estate and documentation of evidence of review.” Moreover, 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, on unusually heavy trading volume.
Then, on May 10, 2024, after the market closed, Seritage released its first quarter 2024 financial results, revealing it was “adjusting [its] pricing projections for some of [its] assets.” As a result, the gross value of the Company’s portfolio of assets was reduced 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, on 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, as well as 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 regarding the identification and review of impairment indicators for investments in real estate; (2) that, as a result, the Company had 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 on the Seritage class action go to: https://bespc.com/cases/SRG
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. 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, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
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