On May 23, 2025, Labaton Keller Sucharow was appointed Lead Counsel in a securities class action against Manhattan Associates, Inc. (Manhattan Associates or the Company) its former CEO Eddie Capel and its CFO Dennis Story (collectively, Defendants). The lawsuit alleges violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act) and U.S. Securities and Exchange Commission (SEC) Rule 10b-5 on behalf of all persons or entities that purchased or otherwise acquired Manhattan Associates’ securities between July 24, 2024, and February 7, 2025, inclusive (the Class Period).
Manhattan Associates is a Georgia-based provider of software solutions designed to manage supply chains for retailers, wholesalers, manufacturers, logistics providers, and other organizations. The Company generates revenue through cloud-based software subscriptions, software licenses, maintenance contracts, hardware sales, and related services. Notably, these services accounted for more than 50% of the Company’s 2024 full-year revenue.
During the Class Period, Manhattan Associates focused on moving many of its on-premise customers to cloud-based services that were expected to generate higher revenues per user for the Company. At that time, Defendants allegedly touted the Company’s services as an ongoing strength for Manhattan Associates while claiming that cloud sales were fueling the growth of its services business. Further, Defendants made projections concerning Manhattan Associates’ expected 2025 revenue while expressing confidence in the Company’s ability to forecast guidance despite macroeconomic fluctuations.
The action alleges that such claims were materially false and misleading and/or failed to disclose material adverse facts about Manhattan Associates’ business, operations, and prospects. Specifically, Defendants are accused of failing 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, 2024, when Manhattan Associates published its financial results for the fourth quarter and full-year 2024 and announced reduced 2025 revenue guidance. Investors and analysts reacted immediately to these revelations, resulting in a 24.5% decline in the Company’s stock price in a single day. The truth was further revealed to the market on February 10, 2025, when the Company announced that its CEO, Defendant Capel, was retiring that week. On this news, the price of Manhattan Associates’ stock price dropped an additional 11.5%.
The case is Prime v. Manhattan Associates Inc. et al., No. 1:25-cv-00992 (N.D. Ga.). Labaton Keller Sucharow represents Orlando Police Officers’ Pension Fund, City of Orlando Firefighters’ Pension Fund, and City of Orlando General Employees’ Pension Funds (collectively, the Orlando Funds).
