Core Viewpoint - A securities class action lawsuit has been filed against Tempus AI, Inc. for alleged misrepresentations and failures to disclose critical information regarding its financial practices and operations during the specified class period [1][2]. Allegations of Misconduct - The lawsuit claims 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 [2] - Concerns were raised about the credibility of Tempus' joint venture with SoftBank, suggesting it appeared to involve "round-tripping" capital to artificially inflate revenue [2] - The business model of Tempus-acquired Ambry is alleged to be based on aggressive and potentially unethical billing practices, risking scrutiny and sustainability [2] - AstraZeneca reportedly reduced its financial commitments to Tempus through a questionable "pass-through payment" arrangement, raising further concerns about the company's financial integrity [2] - These issues collectively indicate weaknesses in Tempus' core operations and revenue prospects [2]. Impact of External Reports - A report from Spruce Point Capital Management highlighted numerous red flags regarding Tempus' management and financial reporting, including a history of executives cashing out before public shareholders incur losses [3] - The report also criticized the overstated AI capabilities of Tempus and pointed out aggressive accounting practices [3] - Concerns were raised about the AstraZeneca and Pathos AI deal, which warranted further scrutiny [3] - The company's recent financial guidance was seen as indicative of weaknesses in its core operations [3]. Stock Price Reaction - Following the release of the report and the ensuing allegations, Tempus' stock price dropped by $12.67 per share, or 19.23%, from $65.87 on May 27, 2025, to $53.20 on May 28, 2025 [4].
Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Tempus AI, Inc. (TEM)