New York City, NY – Investors have initiated a class action lawsuit against Manhattan Associates, Inc., alleging that the software company misled them about its financial forecasts. The lawsuit, which was filed by the law firm Bronstein, Gewirtz & Grossman, LLC, targets certain officers of Manhattan Associates and claims violations of federal securities laws. The legal action involves all parties that bought or acquired Manhattan Associates securities between October 22, 2024, and January 28, 2025.
The suit focuses on claims that Manhattan Associates provided overly optimistic financial guidance throughout the period in question. Initially, company officials expressed confidence in the organization’s ability to project future earnings and revenue, despite evident macroeconomic uncertainties. They highlighted the expected growth of professional services and projected significant revenue from cloud-based initiatives.
However, the optimism unraveled on January 28, 2025, when Manhattan Associates reported that its service revenue for the fourth quarter of 2024 had grown by a mere 0.3% year-on-year, missing the previously forecasted figures by about $2 million. The company cited delays in professional services and deferred deals as primary reasons for the shortfall. Additionally, Manhattan Associates forecasted only modest growth in overall revenue for 2025, estimating an increase of 2% to 3%, while it expected a 10% to 13% decline in GAAP earnings per share.
Following these disclosures, Manhattan Associates’ stock price took a significant hit, plummeting 24.49% the next day. The downward trend continued when, on February 10, 2025, the company announced the upcoming retirement of CEO Eddie Capel, leading to an additional 11.55% decrease in stock value.
Bronstein, Gewirtz & Grossman, LLC, the law firm representing the class, is a reputable entity known for its focus on securities fraud class actions and shareholder derivative suits. They have secured substantial financial recoveries for investors across the nation in various corporate misconduct cases.
Investors who incurred losses during the specified period have until April 28, 2025, to petition the court for lead plaintiff status, although it is not required for participation in any potential recovery. The firm operates on a contingency fee basis, seeking reimbursement for expenses and attorney fees from any financial recovery obtained in the lawsuit.
As Manhattan Associates prepares to address these legal challenges, the focus remains on how its corporate governance will adapt to the current controversies and restore investor confidence. The unfolding case could serve as a significant turning point for the company and its stakeholders.
Interested parties can access more details about the case and join the class action by contacting Peretz Bronstein or Nathan Miller at Bronstein, Gewirtz & Grossman, LLC.
Disclaimer: The content of this article was automatically generated by Open AI and represents a synthesized account of events based on available information. The factual accuracy, people, circumstances, and narrative details may be incorrect. Should individuals seek corrections, retractions, or wish to request removal of this content, they should contact contact@publiclawlibrary.org for assistance.