INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Cerence Inc. (CRNC) Investors

Shareholders with $400,000 losses or more are encouraged to contact the firm

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Cerence Inc. (“Cerence” or the “Company”) (NASDAQ: CRNC) common stock between February 8, 2021 and February 4, 2022, inclusive (the “Class Period”). Cerence investors have until April 26, 2022 to file a lead plaintiff motion.

Investors suffering losses on their Cerence investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [e-mail].

On November 22, 2021, before the markets opened, Cerence announced that it expected fiscal 2022 revenue “to be in the range of $400M to $425M,” which was well below analysts’ expectations.

On this news, Cerence’s stock fell $21.47, or 20.6%, to close at $82.59 per share on November 22, 2021, thereby injuring investors.

Then, on December 15, 2021, Cerence announced that its Chief Executive Office (“CEO”) had abruptly resigned.

On this news, Cerence’s stock fell $8.88, or 11.4%, to close at $69.20 per share on December 15, 2021.

Then, on February 7, 2022, the Company issued its first quarter 2022 financial results and revised its full year 2022 guidance, expecting “revenue to be in the range of $365 million to $385 million because the “conversion from bookings to revenue will take longer than expected.” Cerence also withdrew its closely watched guidance for fiscal year 2024. Furthermore, the Company also announced that its Chief Financial Officer would be retiring.

On this news, Cerence’s stock fell $19.97, or 31.4%, to close at $43.61 per share, thereby injuring investors further.

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: (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) 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 Cerence common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at [phone], toll-free at [phone], or by email to [e-mail], or visit our website at www.howardsmithlaw.com.

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