TELUS International: Under Investigation for Alleged Securities Fraud

TELUS International (Cda) Inc. (NYSE: TIXT; TSX: TIXT) is facing an investigation by U.S. law firm Berger Montague for potential violations of federal securities laws and securities fraud claims. The investigation is focused on whether the company and its senior executives misled investors about the financial performance of its artificial intelligence (AI) solutions during the period from February 16, 2023, through August 1, 2024.



As a result of the company's disclosures on August 1, 2024, the price of TELUS shares plummeted from a closing price of $6.48 per share on August 1 to a close of $4.15 per share on August 2, further declining on the next trading day, August 5, to a close of $3.32 per share – a total decline of $3.16 per share, or more than 48%. This sharp decline in stock price can be attributed to the company's disclosures, which likely raised concerns among investors about the company's financial performance and prospects, particularly regarding its AI solutions.

The investigation is focused on whether TELUS and its senior executives misled investors regarding the Company's financial performance, specifically with regard to its AI solutions, during the period of February 16, 2023 through August 1, 2024, as reflected in a pending shareholder lawsuit. The lawsuit alleges that TELUS overstated its AI capabilities, failed to disclose that its AI offerings were provided on a trial basis, generated lower margins than its legacy offerings, and were cannibalizing some of its higher-margin offerings.

The lawsuit also alleges that TELUS breached its duty of care to investors by failing to disclose that its drive to develop AI capabilities was eroding its bottom line and was unlikely to generate the promised profits. From May 9 to August 1, 2024, the lawsuit alleges, TELUS' disclosures made material misrepresentations about its prospects for profitability in AI, the reason for the company's declining profits, and its decision to discount the price of its AI offerings.

If you are a TELUS investor and would like to learn more about the investigation, please contact Berger Montague: Andrew Abramowitz at CanadaInfo@bm.net or aabramowitz@bm.net, or (215) 875-3015. Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., Delaware, San Diego, San Francisco and Chicago, as well as Toronto, Ontario, Canada, has been a pioneer in securities class action litigation since its founding in 1970.