Case Summary

Teradata

NYSE: TDC

Case Details

  • Ostrander v. Teradata Corporation et al.
  • Class Period:February 13, 2023 - February 12, 2024
  • Date Filed:June 14, 2024
  • Jurisdiction:U.S. District Court, Southern District of California
  • Docket Number: 3:24-cv-01034
  • Lead Plaintiff Deadline: August 12, 2024
Days Left to
Seek Plaintiff
25

Overview

A class action lawsuit has been filed against Teradata Corporation (“Teradata” or the “Company”) (NYSE: TDC) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The Teradata class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Teradata securities between February 13, 2023, and February 12, 2024, both dates inclusive (the “Class Period”).  Investors have until August 13, 2024, to seek appointment as lead plaintiff of the Teradata class action lawsuit.

Teradata, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics.  Historically, Teradata primarily dealt with the information technology (“IT”) 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.

In order 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.

The Teradata class action lawsuit alleges that Defendants, throughout the Class Period, 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: (1) 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; (2) Teradata thus overstated its ability to close customer transactions within their intended timeframes under its expanded business model; (3) Terada failed to timely close several customer transactions that it had factored into its outlook for 2023 ARR growth; (4) as a result, the Company was unlikely to meet its full year 2023 Total and Public Cloud ARR expectations; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.

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If you purchased or otherwise acquired Teradata securities between February 13, 2023, and February 12, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Teradata lawsuit is August 13, 2024.

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