TELUS International Faces Class Action Lawsuit Over AI-Related Securities Fraud Allegations
9 Sources
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TIXT Shareholders Have Final Opportunity to Lead TELUS International (Cda) Inc. Securities Fraud Lawsuit with the Schall Law Firm - TELUS Intl (NYSE:TIXT)
LOS ANGELES , March 25, 2025 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against TELUS International (Cda) Inc. ("Telus" or "the Company") TIXT for violations of §§10(b) and 20(a) of the Securities Exchange Act of
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Deadline Alert: TELUS International (Cda) Inc. (TIXT) Investors Who Lost Money Urged To Contact Glancy Prongay & Murray LLP About Securities Fraud Lawsuit - TELUS Intl (NYSE:TIXT)
LOS ANGELES, March 25, 2025 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP reminds investors of the upcoming March 31, 2025 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired TELUS International (Cda) Inc. ("Telus
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The Gross Law Firm Notifies TELUS International (Cda) Inc. Investors of a Class Action Lawsuit and Upcoming Deadline - TIXT - TELUS Intl (NYSE:TIXT)
NEW YORK, March 26, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of TELUS International (Cda) Inc. TIXT. Shareholders who purchased shares of TIXT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff
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Faruqi & Faruqi Reminds TELUS International Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of March 31, 2025 - TIXT - TELUS Intl (NYSE:TIXT)
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Telus International To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $50,000 in Telus International between February 16, 2023 and
[5]
TIXT INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that TELUS International (Cda) Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit - TELUS Intl (NYSE:TIXT)
NEW YORK, March 26, 2025 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against TELUS International (Cda) Inc. ("TELUS" or "the Company") TIXT and certain of its
[6]
TIXT DEADLINE NOTICE: ROSEN, SKILLED INVESTOR COUNSEL, Encourages TELUS International (Cda) Inc. Investors to Secure Counsel Before Important March 31 Deadline in Securities Class Action - TIXT - TELUS Intl (NYSE:TIXT)
NEW YORK, March 27, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of TELUS International (Cda) Inc. TIXT between February 16, 2023 and August 1, 2024, both dates inclusive (the "Class Period"), of the important March 31, 2025 lead
[7]
DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of TELUS International (Cda) - TELUS Intl (NYSE:TIXT)
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Telus International To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $50,000 in Telus International between February 16, 2023 and
[8]
TIXT Investors Have Opportunity to Lead TELUS International (Cda) Inc. Securities Fraud Lawsuit with the Schall Law Firm - TELUS Intl (NYSE:TIXT)
The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against TELUS International (Cda) Inc. ("Telus" or "the Company") TIXT for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by
[9]
TIXT Investors of TELUS International (Cda) Inc. (TIXT) are Encouraged to Contact Kaplan Fox Before Lead Plaintiff Deadline on March 31, 2025
If you are an investor in and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003. DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than to serve as a lead
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Multiple law firms announce class action lawsuits against TELUS International for alleged securities fraud related to its AI business strategy, with a March 31, 2025 deadline for investors to join.
TELUS International Faces Multiple Class Action Lawsuits
TELUS International (Cda) Inc. (NYSE: TIXT) is facing a series of class action lawsuits filed by multiple law firms on behalf of investors who purchased the company's securities between February 16, 2023, and August 1, 2024. The lawsuits allege that TELUS International violated federal securities laws by making false and misleading statements about its business operations, particularly concerning its AI capabilities and their impact on the company's financial performance
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.Allegations of Securities Fraud
The complaints filed against TELUS International claim that the company:
- Failed to disclose that its AI Data Solutions offerings required cannibalizing higher-margin offerings
- Misrepresented the impact of AI development on the company's declining profitability
- Understated the pressure that the shift towards AI put on the company's margins
- Made materially false and misleading statements about its business prospects
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Financial Performance and Stock Price Impact
The lawsuits highlight two significant events that allegedly revealed the truth about TELUS International's business:
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On May 9, 2024, the company reported a $29 million year-over-year decline in revenue for Q1 2024. During the earnings call, it was revealed that margins from AI offerings were "a bit below average"
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On August 2, 2024, TELUS International announced disappointing Q2 2024 results, including:
- A $5 million quarter-over-quarter or $15 million year-over-year revenue decrease
- A $23 million (15%) quarter-over-quarter adjusted EBITDA decrease
- A 14.6% quarter-over-quarter reduction in adjusted EBITDA margin
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Following these announcements, the company's stock price fell significantly. On May 9, 2024, shares dropped 18.15% to close at $6.36. On August 2, 2024, the stock plummeted 35.96% to $4.15, and continued to fall another 20% to $3.32 on August 5, 2024
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Legal Actions and Deadlines
Multiple law firms, including The Schall Law Firm, Glancy Prongay & Murray LLP, The Gross Law Firm, and Faruqi & Faruqi, LLP, have filed class action lawsuits against TELUS International
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. These firms are urging investors who suffered losses exceeding $50,000 to contact them and consider joining the lawsuit as lead plaintiffs.The deadline for investors to file lead plaintiff motions is March 31, 2025
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.Implications for TELUS International and Investors
This legal action highlights the challenges companies face when transitioning to AI-focused business models. TELUS International's experience underscores the potential risks of cannibalizing existing high-margin services in pursuit of AI capabilities. For investors, the case serves as a reminder of the importance of transparent and accurate disclosures from companies, especially when navigating significant strategic shifts in rapidly evolving tech sectors.
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