The Cerence Class Action Lawsuit was brought by an investor who suffered losses in Cerence stock, the Cerence class action lawsuit seeks to represent purchasers of Cerence Inc. (NASDAQ: CRNC) common stock between February 8, 2021 and February 4, 2022, inclusive (the “Class Period”) and charges Cerence as well as certain of its top executives with violations of the Securities Exchange Act of 1934. The Cerence class action lawsuit was commenced on February 25, 2022 in the District of Massachusetts and is captioned City of Miami Fire Fighters’ and Police Officers’ Retirement Trust v. Cerence Inc., No. 22-cv-10321. If you lost money in Cerence stock and have questions about the Cerence class action lawsuit, please contact Cerence Lawer Timothy L. Miles.
If you suffered losses in Cerence stock contact Cerence Lawyer Timothy L. Miles by calling 855/Tim-M-Law or via e-mail at [email protected] for more information on the Cerence class action lawsuit. Read on to learn more about the Cerence Class Action Lawsuit.
Cerence Accused of Misleading Investors and Inflating the Price of Cerence Stock
Cerence builds artificial intelligence-powered virtual assistants primarily for the automotive market. Cerence generates revenue primarily by selling software licenses and cloud-connected services to its original equipment manufacturers (“OEM”) and OEM supplier customers.
The Cerence class action lawsuit alleges that during the Class Period, and in the face of industry headwinds including a decline in auto-manufacturing due to supply chain issues and semiconductor shortages, Cerence continued to report growing revenues and strong demand for its software licenses. Cerence also touted its “visibility” regarding demand for its products, which allowed Cerence to provide long-term guidance for fiscal year 2024.
But as the Cerence class action lawsuit further alleges, undisclosed to investors, the semiconductor shortage had a materially negative impact on demand for Cerence’s software licenses. In sharp contrast to Cerence’s representations that demand for its software licenses remained strong, Cerence was, in reality, “pulling forward” or “pre-banking” license sales. As a result, Cerence’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On November 22, 2021, Cerence announced revenue guidance for the first quarter and full fiscal year 2022 that was well below analysts’ expectations. In response to this disclosure, Cerence’s stock price declined more than 20% on November 22, 2021. As the market digested the news, Cerence’s stock price declined an additional 5% the following day.
Then, on December 15, 2021, Cerence filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission announcing that Cerence’s CEO, defendant Sanjay Dhawan, had resigned the prior day and that Dhawan was being replaced as CEO. In reaction to this news, the price of Cerence stock declined an additional 11%.
Finally, on February 7, 2022, Cerence announced that its CFO, defendant Mark Gallenberger, would be retiring. Cerence’s new CEO further announced that he had conducted a review of the plans, forecasts, and assumptions for each of Cerence’s business units, and determined the “conversion from bookings to revenue will take longer than expected.” As a result, Cerence was forced to lower its fiscal year 2022 guidance, only a few months after providing disappointing guidance for the same period. As the market digested these disclosures, the price of Cerence stock fell more than 30%, further damaging investors who suffered losses in Cerence stock. If you surffered loses in Cerence stock, contact us about the Cerence class action lawsuit.
How Can a Cerence Lawyer Help Me in the Cerence Class Action Lawsuit?
A Cerence Lawyer is well-versed in the complex laws that govern the securities industry and litigation. A Cerence Lawyer focuses on representing individual investors or funds who have been the victims of fraud or who have disputes with investment professionals. Ordinary individual investors, including civil servants, teachers, nurses, and retirees, may need a securities lawyer. In most cases, if they have lost money due to mistakes, incompetence, or fraud by an investment professional.
While FINRA, the SEC, and state securities regulators serve a vital role in protecting investors, they simply have too many individuals, firms, and market transactions to monitor to discovery every act of fraud or negligence. Individual investors should consult with a securities lawyer if they have lost money due to fraud or stockbroker misconduct, such as a Cerence Lawyer who will work to recover the losses you sustained in Cerence stock. For more information on the Cerence class action lawsuit, contact Cerence Lawyer Timothy L. Miles.
Call a Cerence Lawyer Today about the Cerence Class Action Lawsuit
We have extensive experience in securities fraud class and other class actions. If you, suffered losses in Cerence stock, fill out our case-evaluation form right away and see what an Cerence Lawyer can do for you and if you have a case for a Cerence Lawsuit because you suffered losses in Cerence stock.
Timothy L. Miles, Esq.
Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles was recentely selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019). Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, and more.
Timothy L. Miles
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