Tableau Software, Inc. Accused of Concealing Competitive Threats
Purchasers of Tableau Software, Inc. (DATA) filed a securities class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between June 3, 2015 and February 4, 2016. According to the complaint, Tableau failed to disclose that product launches and upgrades by its competitors were negatively impacting the company’s profitability. In fact, during the company’s November 5, 2015 earnings call, Tableau’s Chief Executive Officer Christian Chabot stated: “I’ll close where I began, which is we don’t see it fundamentally changing the competitive dynamic for Tableau.” Then, just a few months later, on February 4, 2016, Tableau’s Chief Financial Officer finally admitted that “the competitive dynamic has become more crowded and difficult.” As news of the true effects competition was having on Tableau’s growth and outlook for profitability reached the market, Tableau’s stock fell $73.54 per share, or over 64%, to close at $36.60 per share on February 9, 2016. The stock has yet to recover to its class period high of $114.87.