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Law Offices of Frank R. Cruz Encourages TELUS International (Cda) Inc. (TIXT) Investors To Inquire About Securities Fraud Class Action

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased TELUS International (Cda) Inc. (“Telus International” or the “Company”) (NYSE: TIXT) securities between February 16, 2023 and August 1, 2024, inclusive (the “Class Period”). Telus International investors have until March 31, 2025 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR TELUS INTERNATIONAL INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@frankcruzlaw.com, by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.

What Happened?

On May 9, 2024, Telus International released its first quarter 2024 financial results, revealing a $29 million decline in revenue year over year. On the same day, the Company held an earnings call during which Chief Financial Officer, Gopi Chande was asked by an analyst to clarify “what margin should look like on a go-forward basis” as margins “were down year-over-year and . . . were below the full year guidance.” In response, Gopi Chande revealed that the margins generated by the Company’s AI offerings “can be a bit below average.”

On this news, the Company’s share price fell $1.41 or 18.15%, to close at $6.36 on May 9, 2024, on unusually heavy trading volume.

Then, on August 2, 2024, before the market opened, Telus International released second quarter 2024 financial results, 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 International announced it had significantly reduced its full year 2024 fiscal guidance. The Company also disclosed that Jeff Puritt, then-President and Chief Executive Officer, would retire effective September 3, 2024. In an earnings call held the same day, Puritt disclosed that the transition of the Company “towards a more technology centric and specifically AI fueled business,” “necessitates some cannibalization of our tenured and higher margin CX work.” 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 to 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, the Company’s share price fell $2.33 or 35.96%, to close at $4.15 on August 2, 2024, on unusually heavy trading volume. The stock continued to decline on the next trading day available, falling $0.83, or 20%, to close at $3.32 on August 5, 2024, on unusually heavy trading volume.

What Is The Lawsuit About?

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) the Company’s AI Data Solutions offerings required the cannibalization of its higher-margin offerings; (2) that Telus International’s declining profitability was tied to the Company’s drive to develop AI capabilities; (3) that Telus International’s shift toward AI put greater pressure on the Company’s margins than previously disclosed; and (4) 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.

If you purchased or otherwise acquired Telus International securities during the Class Period, you may move the Court no later than March 31, 2025, to request appointment as lead plaintiff in this putative class action lawsuit.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us at:

Law Offices of Frank R. Cruz

212 Avenue of the Stars, Suite 800

Telephone: 310-914-5007

Email: info@frankcruzlaw.com

Visit our website at: www.frankcruzlaw.com

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Law Offices of Frank R. Cruz Encourages TELUS International (Cda) Inc. (TIXT) Investors To Inquire About Securities Fraud Class Action

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