Deadline Soon: Tempus AI, Inc. (TEM) Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit
IF YOU ARE AN INVESTOR WHO LOST MONEY ON TEMPUS AI, INC. (TEM), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.
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 securities between August 6, 2024 and May 27, 2025, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is August 12, 2025.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us:
Frank R. Cruz
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Email us at: info@frankcruzlaw.com
Call us at: 310-914-5007
Visit our website at www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW
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.
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Supplemental Operating Metrics (Unaudited) Our gross billings for the three and six months ended June 30, 2025 and 2024 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Change % 2025 2024 Change % Gross billings $ 36,072,063 $ 29,287,369 23.2 % $ 73,091,528 $ 59,319,954 23.2 % Gross billings are the total dollar value of customer purchases of goods and services. Gross billings are presented net of customer refunds and order discounts. A significant portion of our revenue transactions are comprised of sales of discounted merchant gift cards in which we collect the transaction price from the customer and remit a portion of the transaction price to the third-party suppliers who will provide the related goods or services. For these transactions, gross billings differ from Net Sales reported in our Condensed Consolidated Statements of Operations, which is presented net of the merchant's share of the transaction price. 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Non-GAAP Reconciliation Schedules (Unaudited) Set forth below is a reconciliation of net loss to Modified EBITDA for the three months ended June 30, 2025 and 2024 (unaudited): Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Net Loss $ (2,589,809 ) $ (7,744,646 ) Modified EBITDA adjustments: Income taxes (129,312 ) – Interest expense, net 141,597 262,217 Amortization of intangible assets 557,062 608,017 Amortization of capitalized software costs 161,544 302,737 Bad debt expense 100,810 – Stock option and other noncash compensation 1,607,872 6,214,545 Total Modified EBITDA adjustments 2,439,573 7,387,516 Modified EBITDA $ (150,236 ) $ (357,130 ) Set forth below is a reconciliation of net loss to Modified EBITDA for the six months ended June 30, 2025 and 2024 (unaudited): Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Net Loss $ (5,807,141 ) $ (10,935,366 ) Modified EBITDA adjustments: Income taxes (289,216 ) – Interest expense, net 351,167 509,518 Amortization of intangible assets 1,100,979 1,215,834 Amortization of capitalized software costs 323,087 681,474 Loss on fair value of stock issued on vendor settlement 33,750 – Bad debt expense 100,810 – Stock option and other noncash compensation 3,410,007 7,513,421 Total Modified EBITDA adjustments 5,030,584 9,920,247 Modified EBITDA $ (776,557 ) $ (1,015,119 ) We present Modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. 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Modified EBITDA has limitations as an analytical tool, which includes, among others, the following: ● Modified EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; ● Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs; ● Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and ● Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. 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