Pomerantz Law Firm Announces the Filing of a Class Action Against Teradata Corporation

https://www.bakersfield.com/ap/news/pomerantz-law-firm-announces-the-filing-of-a-class-action-against-teradata-corporation-and/article_eec0c8ac-9048-58c7-8df5-6676cade6fb5.html

AP
Pomerantz Law Firm Announces the Filing of a Class Action Against Teradata Corporation and Pomerantz LLP - (GLOBE NEWSWIRE)
June 14, 2024

NEW YORK, June 14, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Teradata Corporation (“Teradata” or the “Company”) (NYSE: TDC) and certain officers. The class action, filed in the United States District Court for the Southern District of California, and docketed under 24-cv-01034-BAS-MSB, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Teradata securities between February 13, 2023 and February 12, 2024, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

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Hey, "not pro SM" guy.

The Teradata CFO said that they missed a number because one big deal didn't come in when expected.

Sorry this isn't how it works with ARR/Subscription. In either case the most revenue you can recognize is 3 months of monthly payments (or one quarter). What this means is that if Teradata is accounting for revenue as ARR there's almost no way a single deal not "coming in" in an expected quarter will cause an issue.

The reason companies switch from perpetual (all revenue recognized up front) to ARR/Subscription (revenue us is spread over multiple months) is to even out revenue that's reported to inventors. A more normalized revenue stream is compelling to investors because the amount they make is known up front.

I'm not pro SM; however, these law Firms are the ambulance chasers of business. If you do some digging, anytime a company has an earnings announcement that misses expectations and the stock drops by a significant amount, these Firms smell blood in the water and start an "investigation". They are looking for anyone who wants to join the class action to build enough leverage for a settlement (how they make their money). If you click on the link, they're still looking for a "lead plaintiff" meaning no one has signed up to be the named plaintiff to lead the lawsuit.

Given there are multiple lawsuits, it looks like some serious boys have now got involved... O-V-A....

Thread regarding Teradata Corp. layoffs

Pomerantz Law Firm Announces the Filing of a Class Action Against Teradata Corporation

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