PHILADELPHIA, Feb. 06, 2023 (GLOBE NEWSWIRE) -- 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 and certain of the company’s executive officers made a series of materially false and misleading statements, and failed to disclose material adverse facts, about the Company’s business, operations, and prospects in violation of the securities laws.
Specifically, Defendants are alleged to have failed to disclose: (i) that the global semiconductor shortage had a materially negative impact on demand for Cerence’s software licenses; (ii) that Defendants masked the impact of the semiconductor shortage on demand for the Company’s software licenses by pulling forward sales; and (iii) that, as a result of the above, Defendants’ statements about Cerence’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
The complaint further details 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. Next, 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 the closely watched fiscal year 2024 guidance. On this news, Cerence’s stock price fell approximately 30% in value, from a closing price of $63.58 on the prior trading day of February 4, 2022, to close at $43.61 on February 7, 2022.
The investigation seeks to determine whether the members of Cerence’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
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 email (skaskela@kaskelalaw.com / abell@kaskelalaw.com) or online at https://kaskelalaw.com/cases/cerence/ , for additional information about this investigation and their legal rights and options.
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com
