Shareholder rights law firm Robbins LLP is investigating Cerence Inc. (NASDAQ: CRNC) and its officers and directors to determine if they breached their fiduciary duties and violated securities laws. Cerence builds artificial intelligence-powered virtual assistants primarily for the automotive market.
If you would like more information about our investigation of Cerence Inc.'s misconduct, click here.
What Is This Case About: According to a class action complaint filed against Cerence, between February 8, 2021 and February 4, 2022, defendants failed to disclose that: (1) the global semiconductor shortage had a materially negative impact on demand for Cerence's software licenses; and (2) defendants masked the impact of the semiconductor shortage on demand for the Company's software licenses by pulling forward sales. As a result, defendants' statements about Cerence's business, operations, and prospects were false and misleading.
On February 7, 2022, Cerence announced its financial results for the fiscal first quarter of 2022, providing "a 9% decrease at the midpoint compared to the initial FY22 guidance provided on November 22, 2021, and a 3% decrease at the mid-point compared to last year's actual revenue of $387 million." Further, the Company announced it was "withdrawing the fiscal [20]24 target model previously provided…" In response, the price of Cerence stock dropped more than 30%, from a closing price of $63.58 on February 4, 2022, to a closing price of $43.61 per share on February 7, 2022.
Next Steps: If you acquired shares of Cerence Inc. (CRNC) between February 8, 2021 and February 4, 2022, you have legal options. Contact us for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Cerence Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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