NEW YORK, May 13, 2022 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that it is investigating whether the directors and/or officers of Cerence Inc. (“Cerence” or the “Company”) (NASDAQ: CRNC) breached their fiduciary duties of loyalty, good faith and candor and whether the Company suffered substantial harm as a result.
According to a complaint filed by investors in the securities of the Company against certain Defendants, these Defendants allegedly failed to disclose to investors that (i) the global semiconductor shortage had a materially negative impact on demand for the Company’s software licenses; (ii) Defendants masked the impact of the semiconductor shortage on demand for the Company’s software licenses by pulling forward sales; and (iii) as a result of the above, Defendants’ statements about the Company’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
The complaint alleges that the truth began to emerge during the Company’s earnings call on November 22, 2021 for the fiscal fourth quarter of 2021 ended on September 30, 2021, causing the Company’s stock price to fall and investors to suffer substantial losses. On that call, the Company announced revenue guidance for fiscal year 2022 that was well below analysts’ expectations. In response to this revelation, the Company’s stock price fell more than 20 percent from a closing price of $104.06 the prior trading day, to a close of $82.59 on November 22, 2021. The Company’s stock price continued to fall another 5% the following day to close at $78.27 on November 23, 2021.
If you are an investor in Cerence securities and wish to discuss your rights or if you are aware of any facts relating to this investigation, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
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