Tempus Ai,Inc.(US:TEM) Prnewswireยท2025-07-23 20:04Core Viewpoint - A class action lawsuit has been filed against Tempus AI, Inc. for allegedly misleading investors regarding its business prospects and financial reporting [1][2]. Allegations - 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 create revenue [2]. - The business model of Tempus-acquired Ambry is criticized for 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 [2]. - These issues indicate weaknesses in Tempus' core operations and revenue prospects [2]. Financial Reporting Scrutiny - A report by Spruce Point Capital Management highlighted several red flags regarding Tempus' management and operations, including a history of executives cashing out before public shareholders incur losses [3]. - The report claims that Tempus' actual AI capabilities are overstated and that there are signs of aggressive accounting and financial reporting [3]. - Concerns were also raised about the AstraZeneca and Pathos AI deal, which merits further scrutiny [3]. - Recent financial guidance from the company reveals weaknesses in its core operations [3]. Stock Price Impact - Following the news of the allegations and the report, Tempus' stock price fell by $12.67 per share, or 19.23%, from $65.87 on May 27, 2025, to $53.20 on May 28, 2025 [4].