Teradata(US:TDC) GlobeNewswire News Roomยท2024-08-08 15:50Core Viewpoint - Teradata Corporation is facing a federal securities class action due to allegations of misleading statements and failure to disclose critical information regarding its business model and performance expectations, leading to significant investor losses [2][4][8]. Group 1: Allegations and Legal Action - The complaint against Teradata alleges violations of federal securities laws, including making false statements about the company's ability to finalize customer transactions and overstating its growth expectations for 2023 [4]. - The law firm Faruqi & Faruqi is investigating potential claims and has set an August 13, 2024 deadline for investors to seek lead plaintiff status in the class action [2][8]. - Investors who suffered losses exceeding $100,000 between February 13, 2023, and February 12, 2024, are encouraged to discuss their legal rights [1]. Group 2: Financial Performance and Market Reaction - Teradata's Chief Financial Officer revealed at a conference that a significant deal could be delayed, which contributed to a drop in stock price by $2.89 per share (6.24%) on December 7, 2023 [5]. - The company reported that its public cloud ARR increased by only 48% and total ARR by 6% for the full year 2023, falling short of previous expectations due to "deal timing issues" [6]. - Following the announcement of disappointing financial results, Teradata's stock price fell by $10.57 per share (21.66%) on February 13, 2024 [7]. Group 3: Company Strategy and Market Dynamics - Teradata's CEO indicated that the company's expanded business model requires engagement with more executive decision-makers, which has led to delays in closing transactions [7]. - The CEO noted that several large deals, each worth $2 million or more in cloud ARR growth, slipped into 2024 due to these dynamics [7].