Manhattan Associates Faces Class Action Lawsuit Over Revenue Misrepresentation for Investors
Class Action Lawsuit Against Manhattan Associates
Investors of Manhattan Associates, Inc. are currently facing significant uncertainty as a class action lawsuit has been initiated by the law firm Bronstein, Gewirtz & Grossman LLC. This legal action comes as investors believe they suffered substantial losses due to the company’s alleged misrepresentation regarding its expected revenues. This lawsuit targets potential claims against Manhattan Associates and its upper management related to violations of federal securities laws.
Overview of the Lawsuit
The class action lawsuit has been filed on behalf of individuals and entities who purchased or acquired Manhattan Associates stocks throughout the class period, which spans from October 22, 2024, to January 28, 2025. During this timeframe, the lawsuit claims that the representatives of Manhattan consistently misled investors concerning the company's revenue predictions for the fiscal year 2025.
According to specifics laid out in the complaint, the defendants, including members of the company’s management, alleged confidence in the financial health and projected growth of the company despite facing significant macroeconomic challenges. They expressed optimism about the increment in professional services and the anticipated surge in cloud revenue, crucial components for generating income.
However, the situation took a downturn when, on January 28, 2025, Manhattan Associates released its quarterly financial results, revealing that its services revenue surged only marginally by 0.3% year-over-year, which was short of earlier expectations by nearly $2 million. The reasons attributed for this shortfall included delays in professional services and postponed agreements, leading the company to anticipate a bleak revenue outlook for the first quarter of 2025, with projections suggesting poor financial performance until mid-year 2025. Alarmingly, the company's guidance for 2025 suggested only moderate growth of 2-3% in revenues alongside a projected decline in earnings per share.
The news triggered a drastic decline in Manhattan Associates' stock price, which plummeted by approximately 24.49%, thereby impacting the investments of numerous stakeholders. Compounding this misstep, the departure announcement of Eddie Capel, the CEO and President of Manhattan Associates, led to an additional drop in stock value, exacerbating the situation for existing investors.
Implications and Next Steps
For those who have encountered losses as a result of their investment in Manhattan Associates during the designated class period, the law firm Bronstein, Gewirtz & Grossman LLC invites interested parties to join the class action. Those who wish to review the complaint or seek further information about the lawsuit can find resources on the law firm’s website. Importantly, affected investors have a deadline of April 28, 2025, to express their interest in serving as lead plaintiffs in the case.
Representing clients on a contingency basis means that investors who join this lawsuit incur no initial financial burden. Legal fees would only be recouped if the lawsuit culminates in a successful outcome.
Why Choose Bronstein, Gewirtz & Grossman
Bronstein, Gewirtz & Grossman, LLC is a celebrated legal firm specialized in representing investors involved in securities fraud class actions and shareholder derivative lawsuits. The firm's established history evidences its commitment to advocating for investors, recovering hundreds of millions of dollars across the nation. With strong social media presence and updates, they provide continuous insights relevant to investors, emphasizing the importance of collective action in financial mismanagement cases.
As this class action progresses, it becomes crucial for investors to stay informed, engage with their legal options, and potentially claim their rightful recovery from the alleged misconduct faced from New York-based Manhattan Associates.