Manhattan Associates ($MANH) Services Revenue Misrepresentation and Guidance Cut Case

The defendant has requested the court to dismiss the case.

N.D. Georgia

Court

1:25-cv-00992

Case number

10/21/2024

Class period Start

01/27/2025

Class period End

04/27/2025

Lead Plaintiff motion deadline

$MANH investors filed a claim against Manhattan Associates for misrepresenting the strength of its Services segment and issuing false 2025 guidance.
After lowering revenue projections due to declining services demand, $MANH fell 24.5% on January 29, 2025, and another 11.5% on February 10.
$MANH investors can join this case to be notified about potential recovery.
Case Details:

Between July 24, 2024 and February 7, 2025, Manhattan Associates promoted its Services segment as a key growth driver, repeatedly assuring investors that demand remained strong despite macroeconomic challenges. Executives told investors that service revenue growth was fueled by robust cloud sales and issued preliminary 2025 revenue guidance of $1.13–$1.14 billion, including $565–$575 million in services revenue.

The company also emphasized that its customers were continuing to spend on implementation work, and that Manhattan’s strong fundamentals supported its optimistic growth outlook.

But on January 28, 2025, Manhattan Associates reported Q4 results and cut its 2025 revenue guidance by $70 million, citing customer delays and scaled-back implementation budgets. Executives revealed that around 10% of clients had reduced planned services work, and services revenue would now total only $494–$500 million for the year.

On this news, $MANH fell 24.5% on January 29, 2025. Days later, on February 10, the company announced the abrupt retirement of CEO Eddie Capel, causing $MANH to drop another 11.5%. 

Based on these events, $MANH investors filed a claim against Manhattan Associates, accusing the company of the following:
It misled investors by overstating service growth and failing to disclose implementation delays and budget reductions.
It issued inflated 2025 guidance while internally preparing for lower revenue.
Considering all the representations, investors believe Manhattan concealed weakening demand in its most important segment to maintain investor confidence and stock value.

Case Type

US Securities Class Action

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

02/10/2025

Filing date

02/24/2025

Lead Plaintiff Deadline

04/27/2025

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