#United States #New York #Securities Fraud #Pomerantz Law #Manhattan Associates

Pomerantz Law Firm's Investigation into Manhattan Associates

In a notable development for investors of Manhattan Associates, Inc. (NASDAQ: MANH), Pomerantz LLP has initiated an investigation to address possible securities fraud or other unlawful practices enacted by the Company's executives. This action comes on the heels of disappointing financial results published by Manhattan Associates on January 28, 2025, which caused a sharp decline in the company’s stock price.

Recent Financial Performance

On the same day that the financial results were disclosed, Manhattan Associates reported a meager growth of 0.3% in services revenue for the fourth quarter of 2024, totaling $119.5 million. This figure fell approximately $2 million short of the company’s previous guidance from October 2024. The underwhelming performance was attributed to delays in professional services and deferred contracts. As a result, the management expressed concerns that the company's service revenue would likely hit a low point in the first quarter of 2025, with promising growth not expected until mid-year.

In addition to this, near 10% of clients currently undergoing implementations reportedly reduced their planned service work for the upcoming year. With projected growth for 2025 pegged at a modest 2% to 3%, the firm also forecasted that GAAP EPS could drop between 10% and 13%.

Market Reactions

Following the public announcement of these disappointing results, the stock of Manhattan Associates plummeted by $72.26 per share, or 24.49%, settling at $222.84 on January 29, 2025. This drastic drop highlighted investors’ immediate concerns regarding the company’s future operations and revenue streams.

Compounding investors' distress, on February 10, 2025, the Company announced the retirement of its President and CEO, Eddie Capel, effective February 12. This news translated into yet another decline in stock price, falling $23.20, or 11.55%, closing at $177.70 per share on the same day.

Pomerantz LLP's Role

Pomerantz LLP, a prominent name in corporate and securities litigation, is recognized for its ongoing commitment to representing shareholders and fighting against injustices tied to corporate misconduct. Founded over eight decades ago by Abraham L. Pomerantz, the firm has established a legacy of achieving significant recoveries for victims of securities fraud.

The current investigation emphasizes the firm’s proactive approach to protecting shareholders in light of disappointing developments. Investors who believe they have been harmed by these events are encouraged to reach out to Pomerantz through the provided contact details for potential claims.

For those looking for further information regarding this situation, including on how to join a prospective class action, they may refer to the official communications from Pomerantz LLP. This ongoing inquiry into the affairs at Manhattan Associates reflects the firm’s dedication to safeguarding investor rights and maintaining corporate accountability.

Conclusion

The situation surrounding Manhattan Associates is a cautionary tale for investors and highlights the importance of transparency from corporate executives. As the investigation unfolds, the outcomes could bear significant implications not only for current investors but also for the overall market perception of the Company.

For updates on this investigation or advice on potential claims, investors should not hesitate to connect with Pomerantz LLP at the contact information provided.