According to the Complaint, Cerence Inc. builds artificial intelligence powered virtual assistants for the mobility/transportation market.

The Complaint alleges that, during the Class Period, Defendants made materially false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose: (1) that the global semiconductor shortage had a materially negative impact on demand for Cerence’s software licenses; (2) that Defendants masked the impact of the semiconductor shortage on demand for the Company’s software licenses by pulling forward sales; and (3) that, as a result of the above, Defendants’ statements about Cerence’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.

On May 12, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on July 26. Defendants filed a Motion to Dismiss the amended Complaint on September 9.

On March 25, 2024, the Court issued an Order denying Defendants' Motion to Dismiss.

On September 6, 2024, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on September 23.