Kaskela Law LLC announces that it is investigating Cerence Inc. (NASDAQ: CRNC) on behalf of the company’s long-term investors.
Cerence focuses on building artificial intelligence-powered virtual assistants primarily for the automotive market.
Recently a securities fraud complaint was filed against Cerence on behalf of certain investors who purchased shares of the company’s stock between November 16, 2020 and February 4, 2022. According to the complaint, during that time period Cerence issued a series of materially false and misleading statements to its investors concerning the Company’s business, operations and prospects.
The complaint alleges how, on February 7, 2022, Cerence announced results for its fiscal first quarter of 2022 and “shocked the market with three disclosures.” First, the Company announced that CFO Mark Gallenberger would be retiring, effective March 11, 2022. Second, during its earnings conference call, new CEO Stefan Ortmanns announced he had conducted a review of each of the Cerence business units’ plans, forecasts, and assumptions, and determined the “conversion from bookings to revenue will take longer than expected.” As a result, Cerence was forced to lower its fiscal year 2022 guidance, only a few months after providing disappointing guidance for the same period. Finally, Cerence completely withdrew its closely watched fiscal year 2024 guidance. On this news, Cerence’s stock price fell approximately 30% in value, to close at $43.61 per share on February 7, 2022
The investigation seeks to determine whether Cerence’s officers and/or directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct and shareholder loss.
Current Cerence stockholders who purchased or acquired their CRNC shares prior to November 16, 2020 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information about this investigation and their legal rights and options.