Manhattan Associates Inc. is facing a federal securities class action lawsuit alleging violations of federal securities laws. The lawsuit covers shareholders who purchased the company's securities between October 22, 2024, and January 28, 2025. The complaint alleges that the company made false and misleading statements regarding its expected revenue for fiscal year 2025.
Specifically, the complaint claims that Manhattan Associates' statements about its ability to forecast guidance despite macroeconomic fluctuations, the growth potential of its professional services, and cloud revenue driving professional services revenue were misleading. On January 28, 2025, the company announced reduced revenue guidance for full fiscal year 2025, attributing it to a 'shift in professional services work to future periods' and 'reduced customization and higher partner utilization.'
Following this announcement, the price of Manhattan Associates' common stock declined from $295.10 per share on January 28, 2025, to $222.84 per share on January 29, 2025, a decline of about 24.49%. The company denies the allegations and intends to vigorously defend itself, but such legal proceedings can be costly and time-consuming, with unpredictable outcomes.
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