Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, is investigating whether certain directors and officers of Cerence Inc. (“Cerence”) (NASDAQ: CRNC) breached their fiduciary duties to Cerence and its shareholders. If you are a Cerence shareholder, you may contact attorney Joe Pettigrew for additional information toll-free at 844-818-6982 or jpettigrew@scott-scott.com.
Scott+Scott is investigating whether members of the Cerence Board of Directors (the “Board”) made, or caused Cerence to make, false and/or misleading statements, as well as failed to disclose materially adverse facts about Cerence’s business, operations, prospects, and financial health. Specifically, Scott+Scott is investigating whether the Board failed to disclose material information, including whether: (1) the global semiconductor shortage had a materially negative impact on demand for Cerence’s software licenses; (2) certain Cerence officers masked the impact of the semiconductor shortage on demand for Cerence’s software licenses by pulling forward sales; and (3) as a result, statements about Cerence’s business, operations, and prospects lacked a reasonable basis.
On November 22, 2021, Cerence announced revenue guidance for the first quarter and full fiscal year 2022 that was well below analysts’ expectations. On this news, Cerence’s share price declined by $24.47 per share, or approximately 21%, to close at $82.59 per share on November 22, 2021, on unusually heavy trading volume. On December 14, 2021, Cerence announced that its Chief Executive Officer (“CEO”) had abruptly resigned, and a new CEO was taking his place.
Finally, on February 7, 2022, Cerence announced results for the first fiscal quarter of 2022, and announced 1) the Chief Financial Officer was retiring; 2) the new CEO announced that the “conversion from bookings to revenue will take longer than expected”; and 3) as a result, Cerence was completely withdrawing its guidance for fiscal year 2024. On this news, Cerence’s share price fell $19.97 per share, or approximately 31%, to close at $43.61 per share on February 7, 2022, on unusually heavy volume.
What You Can Do
If you are a Cerence shareholder, you may have legal claims against Cerence’s directors and officers. If you wish to discuss this investigation or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at 844-818-6982 or jpettigrew@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.
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Contacts
Joe Pettigrew
Scott+Scott Attorneys at Law LLP
600 W. Broadway, Suite 3300, San Diego, CA 92101
844-818-6982
jpettigrew@scott-scott.com
