Investor Alert: Deadline Approaches in TELUS International Lawsuit

The Law Offices of Frank R. Cruz is reminding investors about the March 31, 2025 deadline for those wishing to participate as a lead plaintiff in the securities fraud class action lawsuit concerning TELUS International (Cda) Inc. (“Telus International” or the “Company”). This action applies to investors who acquired TELUS International securities (ticker: TIXT) between February 16, 2023 and August 1, 2024, referred to as the “Class Period.”

IF YOU ARE AN INVESTOR WHO LOST MONEY ON TELUS INTERNATIONAL (CDA) INC. (TIXT), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.

Overview of Events

On May 9, 2024, Telus International announced its first quarter 2024 financial results, which disclosed a $29 million year-over-year revenue decline. During the earnings call, Chief Financial Officer Gopi Chande was questioned about the Company’s margins, which were below full-year guidance. Chande indicated that margins related to the Company’s AI offerings “can be a bit below average.”

As a result of this announcement, Telus International’s share price dropped $1.41, or 18.15%, settling at $6.36 on May 9, 2024, with heavy trading volume.

On August 2, 2024, prior to market opening, Telus International reported its second quarter 2024 earnings. This report illustrated a sharp revenue decline, showing a $5 million quarter-over-quarter and a $15 million year-over-year reduction. Adjusted EBITDA also fell by $23 million, or 15%, quarter-over-quarter, causing a drop in adjusted EBITDA margin from 23.3% to 19.9%. Additionally, the Company adjusted its full year 2024 guidance downward and announced the retirement of Jeff Puritt, the President and CEO, effective September 3, 2024. Puritt noted during the call that moving toward a more technology-centric and AI-driven business model would necessitate the cannibalization of higher-margin customer experience work, which could pressure historical margins.

Following this news, the Company’s share price fell by $2.33, or 35.96%, to close at $4.15 on August 2, 2024, again on unusually heavy volume. The stock continued its downward trend into the next trading day, falling an additional $0.83, or 20%, to close at $3.32 on August 5, 2024.

Details of the Lawsuit

The class action complaint alleges that during the Class Period, Defendants made materially false and misleading statements and failed to disclose important adverse facts regarding the Company’s business performance and future prospects. Specifically, the complaint states that the Defendants did not disclose: (1) the need for the Company’s AI solutions to cannibalize higher-margin products; (2) the link between Telus International’s declining profitability and its push for AI capabilities; (3) increased margin pressure stemming from the shift toward AI; and (4) how these factors rendered the Defendants’ positive statements about the Company materially misleading or not well-founded.

If you acquired Telus International securities between February 16, 2023, and August 1, 2024, the deadline to request lead plaintiff status in the securities fraud class action is March 31, 2025.

Contact Information

To Participate or Learn More:
If you have questions about this class action or seek additional information regarding your rights or interests in the matter, please contact us:

Frank R. Cruz
The Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Century City, California 90067
Email: [email protected]
Call: 310-914-5007
Visit: www.frankcruzlaw.com
Follow us on Twitter for updates: twitter.com/FRC_LAW

For email inquiries, please include your mailing address, telephone number, and the number of shares purchased. Participating in the class action requires no immediate action; you may retain an attorney if desired or remain an absent class member. This press release may qualify as Attorney Advertising in certain jurisdictions under applicable laws and ethical standards.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250326422878/en/

The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
[email protected]
www.frankcruzlaw.com