Manhattan Associates(US:MANH) Prnewswire·2025-02-27 14:30Core Viewpoint - A class action lawsuit has been filed against Manhattan Associates, Inc. for allegedly misleading investors regarding its Services business and growth prospects, leading to significant financial losses for shareholders [1][4][8]. Group 1: Lawsuit Details - The lawsuit, Prime v. Manhattan Associates, Inc., represents investors who acquired securities between October 22, 2024, and January 28, 2025 [1][2]. - The lead plaintiff deadline for the lawsuit is set for April 28, 2025 [2]. Group 2: Company Performance and Allegations - The litigation focuses on Manhattan Associates' public statements about its Services business, which is a key revenue component, including planning, implementation, consulting, and training [2][4]. - Historically, the company assured investors that Services growth was linked to cloud sales and customer upgrades, while downplaying macroeconomic uncertainties [3][4]. - The complaint alleges that the company made false statements and failed to disclose critical information, creating a misleading impression about its revenue outlook and growth potential [4]. Group 3: Financial Impact - On January 28, 2025, the company reported disappointing Q4 2024 Services revenue of $119.5 million, a mere 0.3% increase year-over-year, falling short of previous guidance by approximately $2 million [5]. - The company indicated that delays in professional services and deferred deals contributed to this disappointing performance, predicting a low point in Services revenue for Q1 2025 [6]. - Additionally, around 10% of customers scaled back their planned services for the upcoming year, and the company projected modest total revenue growth of 2% to 3% for FY 2025, with GAAP EPS expected to decline by 10% to 13% [7]. Group 4: Market Reaction - Following the negative announcements, Manhattan Associates' stock price dropped approximately 24% on January 29, 2025, resulting in a loss of over $4 billion in shareholder value [8].