NEW YORK, March 30, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against TELUS International (Cda) Inc. (“Telus” or the “Company”) (NYSE: TIXT). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Telus and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until March 31, 2025 to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Telus securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On May 9, 2024, Telus issued a press release announcing its financial results for the first quarter of 2024. The press release revealed that the Company was experiencing declining revenue, including a $29 million decrease in revenue year over year. During a related earnings call that same day, the Company’s Chief Financial Officer, Gopi Chande, revealed that the margins generated by the Company’s AI offerings “can be a bit below average.”
On this news, Telus’s stock price fell $1.41 per share, or 18.15%, to close at $6.36 per share on May 9, 2024.
Then, on August 2, 2024, Telus reported its financial results for the second quarter of 2024, revealing a significant slowdown in revenue generation: a $5 million quarter-over-quarter or $15 million year-over-year revenue decrease; a $23 million or 15% quarter-over-quarter adjusted EBITDA decrease; and 14.6% quarter-over-quarter reduction in adjusted EBITDA margin, from 23.3% to 19.9%. As a result, Telus significantly reduced its full year 2024 fiscal guidance. The Company also disclosed that its President and Chief Executive Officer, Jeff Puritt, would retire effective September 3, 2024. During a related earnings call that same day, Puritt disclosed that the Company’s transition “towards a more technology centric and specifically AI fueled business,” “necessitates some cannibalization of our tenured and higher margin CX work.” Puritt further revealed that the Company’s AI offerings had put Telus in the “unendurable position” of allowing the “complete eradication of margin yields in order to enjoy the revenue upside” of AI. Puritt concluded that, ultimately, the Company is “going to have to take it on the chin a little bit in terms of our historical margin profile” and rely upon “eating our own roommate cooking internally,” referring the self-cannibalization of the business, “in order to create the headwind we need to enjoy the margin yield that we’ve historically benefited from.”
On this news, Telus’s stock price fell $2.33 per share, or 35.96%, to close at $4.15 per share on August 2, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
