NEW YORK, March 07, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Cerence Inc. (“Cerence” or the “Company”) (NASDAQ: CRNC) in the United States District Court for the District of Massachusetts on behalf of investors who purchased Company securities between February 8, 2021 and February 4, 2022, inclusive (the “Class Period”).
The Complaint alleges that Defendants failed to disclose 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 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.
Investors who purchased or otherwise acquired shares of Cerence should contact the Firm prior to the April 26, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.