Cloudera, Inc.

On June 5, 2019, the Company reported $103.8 million losses from operations for first quarter 2020, roughly double the year-over-year period. The Company disclosed that it was losing business despite its recent merger with Hortonworks, Inc. and that it suffered an elevated dollar churn rate of 15%. Moreover, the Company announced the abrupt retirement of its Chief Executive Officer.

On this news, the Company’s share price fell $3.59, or nearly 41%, to close at $5.21 on June 6, 2019, thereby injuring investors.

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) Cloudera was finding it increasingly difficult to identify large enterprises interested in adopting the Company's Hadoop-based platform; (2) Cloudera needed to expend an increasing amount of capital on sales and marketing activities to generate new revenues; (3) Cloudera had materially diminished sales opportunities and prospects and could not generate annual positive cash flows for the foreseeable future; (4) the primary motivation for the Company's merger with Hortonworks was to generate growth through the acquisition of Hortonworks' existing customers (as opposed to obtaining them organically); (5) that the purported synergies and other benefits of the merger with Hortonworks were materially overstated; and (6) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.