Core Viewpoint - A class action lawsuit has been filed against Tempus AI, Inc. for allegedly misleading investors regarding its financial practices and operations during the class period from August 6, 2024, to May 27, 2025 [1]. Group 1: Allegations and Issues - The complaint alleges that Tempus inflated the value of contract agreements, many of which were with related parties and included non-binding opt-ins or were self-funded [3]. - Concerns were raised about the credibility of Tempus' joint venture with SoftBank, suggesting it appeared to involve "round-tripping" capital to create revenue [3]. - The business model of Tempus-acquired Ambry is described as aggressive and potentially unethical, risking scrutiny and sustainability [3]. - AstraZeneca reportedly reduced its financial commitments to Tempus through a questionable "pass-through payment" arrangement [3]. - These issues indicate weaknesses in Tempus' core operations and revenue prospects [3]. Group 2: Impact of Reports - On May 28, 2025, a report by Spruce Point Capital Management highlighted numerous red flags regarding Tempus' management, operations, and financial reporting [4]. - The report criticized the company's actual AI capabilities as being overstated and pointed out a history of executives associated with troubled companies [4]. - It also noted signs of aggressive accounting practices and issues with the AstraZeneca and Pathos AI deal [4]. - Following the release of this report, Tempus' stock price fell by $12.67 per share, or 19.23%, from $65.87 to $53.20 [5].
TEMPUS ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Tempus AI, Inc. and Encourages Investors to Contact the Firm