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Associated Press
4 days ago
- Business
- Associated Press
Deadline Alert: Tempus AI, Inc. (TEM) Investors Who Lost Money Urged To Contact Glancy Prongay & Murray LLP About Securities Fraud Lawsuit
LOS ANGELES--(BUSINESS WIRE)--Jun 27, 2025-- Glancy Prongay & Murray LLP reminds investors of the upcoming August 12, 2025 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Tempus AI, Inc. ('Tempus' or the 'Company') (NASDAQ: TEM ) common stock between August 6, 2024 and May 27, 2025, inclusive (the 'Class Period'). IF YOU SUFFERED A LOSS ON YOUR TEMPUS INVESTMENTS, CLICKHERETO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS. What Happened? On May 28, 2025, Spruce Point Capital published a report alleging, among other things, that Tempus' AI capabilities were overstated, and that Company's recent financial guidance revision revealed weakness in its core operations. On this news, Tempus' stock price fell $12.67, or 19.2%, to close at $53.20 per share on May 28, 2025, thereby injuring investors. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Tempus inflated the value of contract agreements, many of which were with related parties, included non-binding opt-ins and/or were self-funded; (2) the credibility and substance of the joint venture with SoftBank was at risk because it gave the appearance of 'round-tripping' capital to create revenue for Tempus; (3) Tempus-acquired Ambry had a business model based on aggressive and potentially unethical billing practices that risked scrutiny and unsustainability; (4) AstraZeneca had reduced its financial commitments to Tempus through a questionable 'pass-through payment' via a joint agreement between it, the Company and Pathos AI; (5) the foregoing issues revealed weakness in core operations and revenue prospects; and (6) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased or otherwise acquired Tempus common stock during the Class Period, you may move the Court no later than August 12, 2025 to request appointment as lead plaintiff in this putative class action lawsuit. Contact Us To Participate or Learn More: If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us: Charles Linehan, Esq., Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles California 90067 Email: [email protected] Telephone: 310-201-9150, Toll-Free: 888-773-9224 Visit our website at Follow us for updates on LinkedIn, Twitter, or Facebook. If you inquire by email, please include your mailing address, telephone number and number of shares purchased. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. View source version on CONTACT: Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100 Los Angeles, CA 90067 Charles Linehan Email:[email protected] Telephone: 310-201-9150 Toll-Free: 888-773-9224 Visit our website at: KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL SOURCE: Glancy Prongay & Murray LLP Copyright Business Wire 2025. PUB: 06/27/2025 12:00 PM/DISC: 06/27/2025 12:00 PM
Globe and Mail
02-06-2025
- Business
- Globe and Mail
Tempus AI Stock (TEM) Could See ‘Tesla or Nvidia-Type Inflection,' Claims Short Seller
AI (TEM) came under intense pressure after a scathing short seller report raised red flags about the company's valuation, business model, and financial transparency. The bearish hedge fund Spruce Point Capital report compared TEM stock's potential trajectory to tech names like Tesla (TSLA) and Nvidia (NVDA), warning investors of a looming 'inflection point.' Confident Investing Starts Here: Tempus AI specializes in data-driven solutions for the healthcare industry with a focus on oncology and genomics. TEM Stock Rattled by Explosive Short Seller Claims The Spruce report warns of a potential 50% to 60% long-term downside for TEM stock and a high risk of market underperformance. The firm argued that Tempus' growth story is largely driven by hype and retail investor enthusiasm, fueled by the company's positioning as an exciting AI-driven tech disruptor. However, Spruce Point cautioned investors to look past the buzz, pointing instead to concerns over aggressive accounting practices, financial engineering, related-party transactions, and overall earnings quality. The report also criticized the company's billing practices, highlighting an aggressive use of billing code 81479, known for minimal oversight and a higher risk of misuse. According to the report, this approach could artificially boost revenue, potentially prioritizing financial gains over patient care. Additionally, the report raised concerns about Tempus AI's leadership, pointing to CEO Eric Lefkofsky's past involvement with companies that faced financial scandals, including bankruptcies and restatements. Following these claims, TEM stock crashed over 19% on Wednesday. Still, despite the sharp drop, the stock remains up 58% year-to-date. Tempus Rejects Short-Seller Claims Tempus AI dismissed the short-seller allegations, calling the report 'riddled with hypotheticals and inaccuracies' and failing to reflect the company's solid track record of financial performance and growth. Is Tempus a Good Stock to Buy? There's no denying the risks with Tempus AI. But Spruce Point's report doesn't introduce any new red flags; it simply amplifies existing concerns. On TipRanks, TEM stock has received a Moderate Buy rating based on six Buy and three Hold recommendations. The Tempus AI share price forecast is $66.25, which implies an upside of 25% from the current level. See more TEM analyst ratings
Yahoo
31-05-2025
- Business
- Yahoo
Tempus AI hits back at scathing short report
Tempus AI hits back at scathing short report originally appeared on TheStreet. On May 28, Tempus AI () stock plunged as the market reacted to a damning report from short seller Spruce Point Capital. One day later, the company responded to the accusations against it. A company at the intersection of healthcare and artificial intelligence (AI), Tempus began trading on the Nasdaq in June 2024, a year that didn't see too many high-profile initial public offerings (IPOs). For that reason, Tempus stood out, and investors were hungry for new AI stocks to buy. 💵💰💰💵 While trading has been fairly volatile, TEM stock has mostly risen and is currently up 35% for the year. Since 2025 began, its performance has been quite strong, with year-to-date (YTD) gains of almost 60%. The damning short report from Spruce Point Capital pushed shares down this week, although TEM stock has since recovered. Tempus took the opportunity to respond to short sellers' claims and offer its own take on the allegations. Since its founding in 2009, Spruce Point Capital has released over 100 forensic short reports, laying out cases against companies across various industries. In April 2025, it revealed short positions in travel tech company Clear Secure and popular beverage producer Monster recently, though, it published a detailed short report that revealed a bet against Tempus stock. In it, the short-seller estimated that TEM stock posed a '50%-60% potential long-term downside and market underperformance risk' for investors, primarily due to concerns regarding its leadership and AI capabilities. For context, Tempus uses AI to improve precision medicine solutions, as well as drug discovery and diagnostics. Its operating system is reported to analyze medical information and make it accessible for patients, as well as doctors and scientific researchers. However, Spruce Point's researchers make it clear in the report that they harbor grave concerns about the AI hype surrounding TEM stock, suggesting that it may be significantly overblown. 'Our concerns about the Company's AI capabilities deepened after we evaluated split-second product demonstrations from promotional videos and screenshots from the Company's website,' the report states. 'Apparently, Tempus has not properly figured out how to leverage AI to cross reference and check even basic facts such as patient age and the sequencing order of samples and deliveries.' The short seller also discusses Tempus founder and CEO Eric Lefkofsky, highlighting comparisons he has drawn to his company and market leaders such as Tesla and Nvidia. 'He suggests that Tempus is likely to reach a similar inflection point, and that vast upside is around the corner. However, 10 years since being founded in 2015, there is no evidence that Tempus has generated a profit or net positive cash flow,' Spruce Point notes. More AI News: OpenAI teams up with legendary Apple exec Major AI CEO sounds alarm on jobless 'bloodbath' in near-term Salesforce makes a big bet on booming tech market The report raises the point that after a decade of operation, both Tesla and Nvidia had posted $2 billion in revenue and achieved at least one cash flow positive year. It notes that in 2024, only $12.4 million, roughly 2% of Tempus's yearly revenue, came from AI applications. The underlying theme of the Spruce Point short report seems to be that it believes Tempus's AI hype is overblown and poses a massive risk for investors. For that reason, TEM stock earns a Strong Sell Opinion from the all companies respond after being targeted by a short seller, but on May 29, Tempus issued a statement on X, addressing the report. The company described Spruce Point's claims as inaccurate and misleading, encouraging investors to do their own research. 'We do not intend to respond through the media to a report that is riddled with inaccuracies, conjecture, and ill-informed hypotheticals,' the health care company stated. 'It also fails to address Tempus' history of strong financial performance and impressive growth.' Tempus also took its argument a step further, claiming that the last five stocks targeted by Spruce Point are up 'on average, over 20% in the past 4 months.' The company added that it stands by its results and remains committed to helping health care professionals leverage AI for the benefit of AI hits back at scathing short report first appeared on TheStreet on May 31, 2025 This story was originally reported by TheStreet on May 31, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-05-2025
- Business
- Yahoo
Tempus AI hits back at scathing short report
Tempus AI hits back at scathing short report originally appeared on TheStreet. On May 28, Tempus AI () stock plunged as the market reacted to a damning report from short seller Spruce Point Capital. One day later, the company responded to the accusations against it. A company at the intersection of healthcare and artificial intelligence (AI), Tempus began trading on the Nasdaq in June 2024, a year that didn't see too many high-profile initial public offerings (IPOs). For that reason, Tempus stood out, and investors were hungry for new AI stocks to buy. 💵💰💰💵 While trading has been fairly volatile, TEM stock has mostly risen and is currently up 35% for the year. Since 2025 began, its performance has been quite strong, with year-to-date (YTD) gains of almost 60%. The damning short report from Spruce Point Capital pushed shares down this week, although TEM stock has since recovered. Tempus took the opportunity to respond to short sellers' claims and offer its own take on the allegations. Since its founding in 2009, Spruce Point Capital has released over 100 forensic short reports, laying out cases against companies across various industries. In April 2025, it revealed short positions in travel tech company Clear Secure and popular beverage producer Monster recently, though, it published a detailed short report that revealed a bet against Tempus stock. In it, the short-seller estimated that TEM stock posed a '50%-60% potential long-term downside and market underperformance risk' for investors, primarily due to concerns regarding its leadership and AI capabilities. For context, Tempus uses AI to improve precision medicine solutions, as well as drug discovery and diagnostics. Its operating system is reported to analyze medical information and make it accessible for patients, as well as doctors and scientific researchers. However, Spruce Point's researchers make it clear in the report that they harbor grave concerns about the AI hype surrounding TEM stock, suggesting that it may be significantly overblown. 'Our concerns about the Company's AI capabilities deepened after we evaluated split-second product demonstrations from promotional videos and screenshots from the Company's website,' the report states. 'Apparently, Tempus has not properly figured out how to leverage AI to cross reference and check even basic facts such as patient age and the sequencing order of samples and deliveries.' The short seller also discusses Tempus founder and CEO Eric Lefkofsky, highlighting comparisons he has drawn to his company and market leaders such as Tesla and Nvidia. 'He suggests that Tempus is likely to reach a similar inflection point, and that vast upside is around the corner. However, 10 years since being founded in 2015, there is no evidence that Tempus has generated a profit or net positive cash flow,' Spruce Point notes. More AI News: OpenAI teams up with legendary Apple exec Major AI CEO sounds alarm on jobless 'bloodbath' in near-term Salesforce makes a big bet on booming tech market The report raises the point that after a decade of operation, both Tesla and Nvidia had posted $2 billion in revenue and achieved at least one cash flow positive year. It notes that in 2024, only $12.4 million, roughly 2% of Tempus's yearly revenue, came from AI applications. The underlying theme of the Spruce Point short report seems to be that it believes Tempus's AI hype is overblown and poses a massive risk for investors. For that reason, TEM stock earns a Strong Sell Opinion from the all companies respond after being targeted by a short seller, but on May 29, Tempus issued a statement on X, addressing the report. The company described Spruce Point's claims as inaccurate and misleading, encouraging investors to do their own research. 'We do not intend to respond through the media to a report that is riddled with inaccuracies, conjecture, and ill-informed hypotheticals,' the health care company stated. 'It also fails to address Tempus' history of strong financial performance and impressive growth.' Tempus also took its argument a step further, claiming that the last five stocks targeted by Spruce Point are up 'on average, over 20% in the past 4 months.' The company added that it stands by its results and remains committed to helping health care professionals leverage AI for the benefit of AI hits back at scathing short report first appeared on TheStreet on May 31, 2025 This story was originally reported by TheStreet on May 31, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
31-05-2025
- Business
- Miami Herald
Tempus AI hits back at scathing short report
On May 28, Tempus AI (TEM) stock plunged as the market reacted to a damning report from short seller Spruce Point Capital. One day later, the company responded to the accusations against it. A company at the intersection of healthcare and artificial intelligence (AI), Tempus began trading on the Nasdaq in June 2024, a year that didn't see too many high-profile initial public offerings (IPOs). For that reason, Tempus stood out, and investors were hungry for new AI stocks to buy. Don't miss the move: Subscribe to TheStreet's free daily newsletter While trading has been fairly volatile, TEM stock has mostly risen and is currently up 35% for the year. Since 2025 began, its performance has been quite strong, with year-to-date (YTD) gains of almost 60%. The damning short report from Spruce Point Capital pushed shares down this week, although TEM stock has since recovered. Tempus took the opportunity to respond to short sellers' claims and offer its own take on the allegations. Since its founding in 2009, Spruce Point Capital has released over 100 forensic short reports, laying out cases against companies across various industries. In April 2025, it revealed short positions in travel tech company Clear Secure and popular beverage producer Monster Energy. Related: Billionaire fund manager, skeptical of AI, backs shocking stock Most recently, though, it published a detailed short report that revealed a bet against Tempus stock. In it, the short-seller estimated that TEM stock posed a "50%-60% potential long-term downside and market underperformance risk" for investors, primarily due to concerns regarding its leadership and AI capabilities. For context, Tempus uses AI to improve precision medicine solutions, as well as drug discovery and diagnostics. Its operating system is reported to analyze medical information and make it accessible for patients, as well as doctors and scientific researchers. However, Spruce Point's researchers make it clear in the report that they harbor grave concerns about the AI hype surrounding TEM stock, suggesting that it may be significantly overblown. The short seller also discusses Tempus founder and CEO Eric Lefkofsky, highlighting comparisons he has drawn to his company and market leaders such as Tesla and Nvidia. "He suggests that Tempus is likely to reach a similar inflection point, and that vast upside is around the corner. However, 10 years since being founded in 2015, there is no evidence that Tempus has generated a profit or net positive cash flow," Spruce Point notes. More AI News: OpenAI teams up with legendary Apple execMajor AI CEO sounds alarm on jobless 'bloodbath' in near-termSalesforce makes a big bet on booming tech market The report raises the point that after a decade of operation, both Tesla and Nvidia had posted $2 billion in revenue and achieved at least one cash flow positive year. It notes that in 2024, only $12.4 million, roughly 2% of Tempus's yearly revenue, came from AI applications. The underlying theme of the Spruce Point short report seems to be that it believes Tempus's AI hype is overblown and poses a massive risk for investors. For that reason, TEM stock earns a Strong Sell Opinion from the firm. Related: Google hit with scathing accusations from top VC firm Not all companies respond after being targeted by a short seller, but on May 29, Tempus issued a statement on X, addressing the report. The company described Spruce Point's claims as inaccurate and misleading, encouraging investors to do their own research. "We do not intend to respond through the media to a report that is riddled with inaccuracies, conjecture, and ill-informed hypotheticals," the health care company stated. "It also fails to address Tempus' history of strong financial performance and impressive growth." Tempus also took its argument a step further, claiming that the last five stocks targeted by Spruce Point are up "on average, over 20% in the past 4 months." The company added that it stands by its results and remains committed to helping health care professionals leverage AI for the benefit of patients. Related: Legendary tech expert has unexpected view of AI impact on jobs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
