NEW YORK CITY, NY / ACCESS Newswire / April 17, 2025 / Labaton Keller Sucharow LLP ("Labaton") announces that, on April 15, 2025, it filed a securities class action lawsuit (the "Complaint") on behalf of its client City of Orlando Police Officers' Pension Fund ("Orlando Police") against Manhattan Associates, Inc. ("Manhattan Associates" or the "Company") (NASDAQ:MANH) and certain Manhattan Associates officers (collectively, "Defendants"). This action, which is captioned City of Orlando Police Officers' Pension Fundv. Manhattan Associates, Inc., No. 25-cv-2089 (N.D. Ga.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, on behalf of all persons and entities that purchased or otherwise acquired Manhattan Associates securities between July 24, 2024, and February 7, 2025, inclusive (the "Class Period").
The Complaint is related to a previously filed action against Manhattan Associates captioned Prime v. Manhattan Associates, Inc., No. 25-cv-00992 (N.D. Ga.) (the "Prime Action"). The Prime Action was filed on February 25, 2025, on behalf of all persons or entities that purchased or otherwise acquired Manhattan Associates securities between October 22, 2024, and January 28, 2025. The Complaint expands upon the Prime Action by alleging a longer class period which includes additional alleged false and misleading statements and an additional disclosure of Defendants' fraud.
Manhattan Associates is an Atlanta, Georgia based provider of inventory management software and related services. Manhattan Associates generates revenue through cloud-based software subscriptions, software licenses, maintenance contracts, hardware sales, and related services. The Company's Services segment is a critical part of Manhattan Associates' business, accounting for more than 50% of the Company's 2024 full-year revenue. Such services include advising and assisting customers in planning and implementing Manhattan Associates' solutions.
During the Class Period, Defendants touted services as an ongoing strength for Manhattan Associates while claiming that cloud sales were fueling the growth of its services business. Defendants also made projections concerning Manhattan Associates' expected 2025 revenue while expressing confidence in the Company's ability to forecast guidance despite macroeconomic fluctuations.
Such claims were materially false and misleading and/or failed to disclose material adverse facts about Manhattan Associates' business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) customer delays and deferrals were resulting in a slowdown to the Company's services revenue growth; (ii) as customers switched from on-premise to cloud-based software, they utilized fewer of Manhattan Associates' services; and (iii) as a result of the forgoing, Defendants' positive statements about Manhattan Associates' business, operations, and prospects were materially false and misleading and/or lacked reasonable basis.
The truth began to emerge on January 28, 2025. On that date Manhattan Associates reported its fourth quarter and full-year 2024 financial results and announced reduced 2025 revenue guidance. The Company attributed these results and lowered guidance largely to a decline in its service revenue. On this news, Manhattan Associates' stock price dropped $72.26 per share, or 24.5 percent, to close at $222.84 per share on January 29, 2025. The truth was further revealed to the market on February 10, 2025, when the Company announced that its chief executive officer, Eddie Capel, was retiring that same week. On this news, the price of Manhattan Associates' stock price dropped another $23.20, or 11.5 percent, to close at $177.70 per share on February 10, 2025.
Pursuant to the notice published on February 26, 2025, in connection with the filing of the Prime Action, as required by the Private Securities Litigation Reform Act of 1995, if you purchased Manhattan Associates securities during the Class Period and were damaged thereby, you are a member of the proposed "Class" and may be able to seek appointment as Lead Plaintiff. If you wish to serve as Lead Plaintiff in these related securities actions, a motion on your behalf must be filed with the U.S. District Court for the Northern District of Georgia no later than April 28, 2025. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.
You may contact Connor Boehme, Esq. of Labaton at (212) 907-0780 or via email at cboehme@labaton.com to discuss your rights regarding the appointment of Lead Plaintiff or your interest in this matter. You may also retain counsel of your choice to represent you in this class action lawsuit. You can view a copy of the Complaint online here.
Contact
Connor Boehme, Esq.
Labaton Keller Sucharow LLP
(212) 907-0780
cboehme@labaton.com
SOURCE: Labaton Keller Sucharow LLP
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