SAN FRANCISCO–(BUSINESS WIRE)–The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired shares of Cerence Inc. (“Cerence” or the “Company”) common stock (Nasdaq: CRNC) between February 8, 2021 and February 4, 2022 inclusive (the “Class Period”).
If you purchased or otherwise acquired shares of Cerence common stock during the class period, you can ask the court to be named lead plaintiff in the action no later than April 26, 2022.
A lead plaintiff is a representative party who acts on behalf of the other class members to direct the litigation. Your share of any recovery in the actions will not be affected by your decision whether to seek appointment as lead plaintiff. You can retain Lieff Cabraser, or other attorneys, as your attorney in the action.
Cerence investors who wish to learn more about the litigation and how to seek an appointment as lead plaintiff should click hereor text or email [email protected], or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background to the Cerence Securities group litigation
Cerence, headquartered in Burlington, Massachusetts, builds AI-based virtual assistants primarily for the automotive market. The Company was created on October 1, 2019 as a tax-exempt spin-off of Nuance Communications, Inc. Throughout the Class Period, Cerence highlighted its positive outlook for fiscal 2024, when restrictions in its use of Nuance’s intellectual property rights and data will be terminated.
The action alleges that, throughout the Class Period, the Defendants made false and misleading statements and failed to disclose that: (1) Cerence’s application for software licenses was adversely affected by the global shortage semiconductor devices which led to a decline in automobile manufacturing; (2) the Company was “forwarding” or “pre-banking” license sales to mask these issues; and (3) as a result of the foregoing, Cerence’s positive guidance for fiscal years 2022 and 2024 in fact had no reasonable basis.
On November 22, 2021, the Company released its results for the fourth fiscal quarter and fiscal year 2021, which included guidance for fiscal year 2022 well below analysts’ expectations. At that time, the Company maintained its position of a fiscal year 2024 guidance of $700 million. On this news, Cerence’s common stock price fell 20% from its closing price of $104.06 on Nov. 19, 2021 to $82.59 on the next trading day, Nov. 22, 2021, on a unusually high volume of transactions. Cerence’s stock price continued to decline the following day, closing at $78.27 on November 23, 2021, also on high trading volume.
On December 15, 2021, the company announced that its CEO Sanjay Dhawan had resigned the previous day. On the news, Cerence’s common stock price fell a further 11%, from its closing price of $78.08, to close at $69.20 on December 15, 2021, on very high trading volume.
On February 7, 2022, the Company announced its financial results for the first fiscal quarter of 2022 and the surprise retirement of Chief Financial Officer Mark Gallenberger, effective March 11, 2022. In a conference call with analysts today There, new Cerence CEO Stefan Ortmanns revealed that “converting bookings into revenue will take longer than expected” and that the company was retiring its 2024 target financial model. Cerence fell more than 30% from its closing price of $63.58 on February 4, 2022 to $43.61 on February 7, 2022, on extremely high trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville and Munich, is an internationally renowned law firm committed to advancing investor rights and promoting corporate responsibility. The National Law Review has recognized Lieff Cabraser as one of the nation’s top plaintiff law firms for fourteen years. Law360 selected Lieff Cabraser as one of the top 50 law firms nationwide for litigation, noting our firm’s “laser focus” and noting that our firm regularly finds itself “up against some of the law firms of the largest and strongest defenses in the world”. Reference dispute named Lieff Cabraser one of “America’s Top 10 Plaintiff Companies”.
For more information on Lieff Cabraser and the company’s investor representation, please visit https://www.lieffcabraser.com/.
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