Bragar Eagel & Squire, PC remind investors of this class

NEW YORK, March 16, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been filed on behalf of shareholders of Cerence, Inc. (NASDAQ: CRNC), Affirm Holdings, Inc. (NASDAQ: AFRM), Cabaletta Bio, Inc. (NASDAQ: CABA) and Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC). Shareholders have until the deadlines below to ask the court to serve as lead plaintiff. Additional information on each case can be found at the link provided.

Cerence, Inc. (NASDAQ: CRNC)

Course period: February 8, 2021 – February 4, 2022

Lead Applicant Deadline: April 26, 2022

Cerence is a Burlington, Massachusetts-based company focused on creating artificial intelligence-based virtual assistants primarily for the automotive market. Despite the ongoing COVID-19 pandemic, supply chain issues and semiconductor shortages, which have curtailed global auto production, Cerence continued to report revenue growth and growth. strong demand for software licenses for its products. Cerence even touted its “visibility” into demand for its products by providing fiscal 2024 revenue forecasts, forecasts that were a focus of securities analysts and which the company has raised significantly over the course of the year. period covered by the appeal.

The class action alleges that, during the class action period, defendants made materially false and misleading statements and failed to disclose material adverse facts about the company’s business, operations and prospects in violation of the Exchange Act and SEC Rule 10b-5. Specifically, defendants have failed to disclose: (1) that the global shortage of semiconductors has had a material adverse impact on Cerence’s software license demand; (2) that defendants masked the impact of the semiconductor shortage on the company’s software license demand by driving sales forward; and (3) that as a result of the foregoing, defendants’ statements regarding Cerence’s business, operations and prospects were false and misleading and/or lacked reasonable basis.

The truth began to emerge during Cerence’s November 22, 2021 earnings call for the fourth fiscal quarter of 2021 ended September 30, 2021, resulting in Cerence’s share price crashing and substantial losses for investors. . On that call, Cerence announced fiscal 2022 revenue guidance well below analysts’ expectations. In response to this revelation, Cerence’s stock price fell more than 20% from a closing price of $104.06 on the previous trading day to a close of $82.59 on November 22. 2021. The company’s stock price continued to fall 5% the next day to close at $78.27 on November 23, 2021.

Then, about three weeks later, Cerence CEO Sanjay Dhawan abruptly resigned. Upon this news, Cerence’s stock price fell an additional 11%, from a closing price of $78.08 on December 14, 2021 to a closing price of $69.20 on December 15, 2021.

Finally, on February 7, 2022, the Company announced the results of its fiscal 2022 first quarter ended December 31, 2021 and shocked the market with three disclosures. First, the company announced that Chief Financial Officer Mark Gallenberger would be retiring, effective March 11, 2022. Then, during his earnings conference call, new CEO Stefan Ortmanns announced that he had conducted a review of plans, forecasts and forecasts for each of Cerence’s business units, and assumptions, and determined that “converting bookings into revenue will take longer than expected”. As a result, Cerence was forced to lower its forecast for fiscal year 2022, just months after providing a disappointing forecast for the same period. Finally, Cerence completely withdrew the closely watched guidance for fiscal year 2024. On this news, Cerence’s stock price fell another 30% from a closing price of $63.58 on the day of previous exchange from February 4, 2022 at $43.61 on February 7, 2022.

For more information on the Cerence class action, please visit: https://bespc.com/cases/CRNC

Affirm Holdings, Inc. (NASDAQ: AFRM)

Class period: February 10, 2022 after 1:15 p.m.

Lead Applicant Deadline: April 29, 2022

Affirm claims to be a “next generation platform for digital and mobile-first commerce”. Through its platform, the Company offers consumers “buy now, pay later” or “BPL” services. Affirm represents itself “a more flexible and transparent alternative to credit cards”.

At approximately 1:15 p.m. on February 10, 2022, Affirm posted a Tweet from its official account in which the Company disclosed certain measures of its second quarter 2022 financial results. The Tweet, which was posted ahead of the scheduled release of its financial results by the company, described a very successful quarter, which included a 77% increase in revenue. This sent Affirm’s stock price up nearly 10% in intraday trading.

The Tweet was materially misleading, in that it failed to disclose full details of Affirm’s second quarter financial results.

Indeed, the company deleted the Tweet and released its full second quarter financial results ahead of schedule. Full financial results were lackluster – the company posting a loss of $0.57 per share, against analyst expectations of $0.37 per share.

As a result of this news, Affirm’s stock price fell from an intraday high of $83.57 per share on February 10, 2022 to close at $58.68 per share, or about 32%.

For more information on the Affirm class action, please visit: https://bespc.com/cases/AFRM

Cabaletta Bio, Inc. (NASDAQ: CABA)

Class period: October 24, 2019; October 24, 2019 – December 13, 2021

Lead Applicant Deadline: April 29, 2022

According to the lawsuit, the IPO offering documents and defendants throughout the class period made false and/or misleading statements and/or failed to disclose that: (1) the principal data of the Phase 1 clinical trial indicated that DSG3-CAART had, among other things, worsened disease activity scores in some participants and required additional systemic medication to improve disease activity after DSG3 infusion -CAART; (2) as a result, DSG3-CAART was not as effective as the Company had represented it to investors; (3) therefore, the Company had exaggerated the clinical and/or commercial prospects of DSG3-CAART; and (4) therefore, the Company’s public statements were materially false and misleading at all relevant times. When the real details entered the market, the lawsuit claims investors suffered damages.

For more information on the Cabaletta class action, please visit: https://bespc.com/cases/CABA

Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC)

Course period: April 27, 2017 – February 25, 2022

Lead Applicant Deadline: May 2, 2022

The lawsuit concerns whether the company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Ericsson overstated the extent in which it had reformed its business practices to eliminate the use of bribes to secure business in foreign countries; (2) Ericsson had bribed the terrorist group Islamic State of Iraq and Syria (“ISIS” or “Islamic State”) to gain access to certain transportation routes in Iraq; (3) as a result, the Company’s revenues from its operations in Iraq were derived, at least in large part, from unlawful and therefore unsustainable conduct; and (4) therefore, the Company’s public statements were materially false and misleading at all relevant times.

On February 15, 2022, during intraday trading hours, Ericsson issued a press release disclosing media investigations into its business dealings in Iraq. The press release assured investors of the company’s “transparency” regarding these investigations, while vaguely alluding to having undertaken its own investigative and compliance efforts.

Then, on February 16, 2022, Ericsson’s CEO told a Swedish newspaper that the company may have made payments to ISIS for access to certain transport routes in Iraq, noting that the company had identified of “unusual expenses dating back to 2018” but had not yet determined the ultimate recipient of the funds for those expenses, although defendants could “see that he disappeared[,]and that Ericsson has spent “considerable resources trying to figure this out as best we can”.

Following these disclosures, the price of Ericsson’s American Depositary Share (“ADS”) fell by $1.44 per ADS, or 11.57%, to close at $11.01 per ADS on February 16, 2022 .

Finally, on Sunday, February 27, 2022, the International Consortium of Investigative Journalists (“ICIJ”) released a report on Ericsson’s alleged relationship with the Islamic State in Iraq, citing a leaked internal investigation that found that Ericsson is said to have made “tens of millions of dollars in suspicious payments” for nearly a decade to maintain business in the country.

The ICIJ report also alleged that “a spreadsheet lists the company’s investigations into possible bribes, money laundering and embezzlement by employees in Angola, Azerbaijan, in Bahrain, Brazil, China, Croatia, Libya, Morocco, United States and South Africa.[,]which “have not previously been disclosed”.

On this news, the price of Ericsson’s ADS fell $0.84 per ADS, or 8.3%, from its closing price on February 25, 2022, to close at $9.28 per ADS on February 28. February 2022, the next trading day.

For more information on the Ericsson class action, please visit: https://bespc.com/cases/ERIC

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.

Contact information:

Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
[email protected]
www.bespc.com

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