According to the Complaint, Tempus purports to provide Artificial Intelligence (“AI”) enabled precision medicine solutions. The Company claims it develops intelligent diagnostics through the practical application of AI in healthcare to make laboratory tests and connects laboratory results to a patient’s own clinical data. This class action was filed against Tempus and two of its Officers.

The Complaint alleges Tempus branded itself as an AI company despite having little history of generating significant revenues from AI solutions; instead, the Company generated most of its revenues from acquisitions, genomic testing and data licensing agreements. Defendants repeatedly claimed that the contract value and quality of its data licensing agreements with life science companies were secure and expanding. The Company often reported on its relationship with long-term customer AstraZeneca as an example. Importantly, during the Class Period, Tempus announced an expanding contract with AstraZeneca via a joint venture between the Company, AstraZeneca and Pathos AI. The Company similarly announced a joint venture with SoftBank as a way to generate revenue growth by entering the Japanese market. Tempus additionally claimed high revenue potential for Ambry Genetics (“Ambry”), a target it acquired during the Class Period. The Company claimed that Ambry’s accelerated growth was on account of its strong relationships with health care providers.