Lawsuit filed for Investors who lost money with shares of TELUS International (Cda) Inc. (NYSE: TIXT)

An investor, who purchased shares of TELUS International (Cda) Inc. (NYSE: TIXT), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by TELUS International (Cda) Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of TELUS International (Cda) Inc. (NYSE: TIXT) have certain options and for certain investors are short and strict deadlines running. Deadline: March 31, 2025. NYSE: TIXT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Canada based TELUS International (Cda) Inc. design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. TELUS International (Cda) Inc. reported that its annual Total Revenue rose from over $2.46 billion in 2022 to over $2.7 billion in 2023, and that its Net Income declined from $183 million in 2022 to $54 million in 2023.

On May 9, 2024, Telus International released its first quarter 2024 financial results, revealing a $29 million decline in revenue year over year. On the same day, the Company held an earnings call during which Chief Financial Officer, Gopi Chande was asked by an analyst to clarify "what margin should look like on a go-forward basis" as margins "were down year-over-year and . . . were below the full year guidance." In response, Gopi Chande revealed that the margins generated by the Company's AI offerings "can be a bit below average."

Then, on August 2, 2024, before the market opened, Telus International released second quarter 2024 financial results, revealing a significant slowdown in revenue generation: a $5 million quarter-over-quarter or $15 million year-over-year revenue decrease; a $23 million or 15% quarter-over-quarter adjusted EBITDA decrease; and 14.6% quarter-over-quarter reduction in adjusted EBITDA margin, from 23.3% to 19.9%. As a result, Telus International announced it had significantly reduced its full year 2024 fiscal guidance. The Company also disclosed that Jeff Puritt, then-President and Chief Executive Officer, would retire effective September 3, 2024. In an earnings call held the same day, Puritt disclosed that the transition of the Company "towards a more technology centric and specifically AI fueled business," "necessitates some cannibalization of our tenured and higher margin CX work." Puritt concluded that, ultimately, the Company is "going to have to take it on the chin a little bit in terms of our historical margin profile" and rely upon "eating our own roommate cooking internally," referring the self-cannibalization of the business, "in order to create the headwind we need to enjoy the margin yield that we've historically benefited from."

Shares of TELUS International (Cda) Inc. (NYSE: TIXT) declined from $11.42 per share on February 16, 2024, to as low as $2.83 per share on August 12, 2024.

The plaintiff claims that between February 16, 2023 and August 1, 2024, the defendants failed to disclose to investors: (1) the Company's AI Data Solutions offerings required the cannibalization of its higher-margin offerings; (2) that Telus International's declining profitability was tied to the Company's drive to develop AI capabilities; (3) that Telus International's shift toward AI put greater pressure on the Company's margins than previously disclosed; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of TELUS International (Cda) Inc. (NYSE: TIXT) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.