TLDR: Tempus AI, Inc. (NASDAQ: TEM) saw its stock price fall by over 19% on May 28, 2025, following a damning report from Spruce Point Capital Management. The report accused the company of aggressive accounting practices, questionable leadership, and exaggerating its artificial intelligence capabilities. These allegations have since triggered multiple securities fraud lawsuits against Tempus AI.
Tempus AI, Inc. (NASDAQ: TEM) experienced a dramatic decline in its stock value on May 28, 2025, with shares plummeting over 19%, or $12.67, to close at $53.20 per share. This significant drop was precipitated by a critical report published by Spruce Point Capital Management on the same day, which leveled serious accusations against the healthcare technology company.
Spruce Point Capital Management’s report alleged that Tempus AI was engaging in ‘aggressive and suspicious accounting practices’ and highlighted that the company is managed by ‘leaders who have a dubious history.’ Specifically, the report pointed to Tempus AI’s CEO, citing a ‘documented history of public shareholder wealth destruction,’ and noted that board members and the Chief Accounting Officer were linked to ‘troubling financial restatements and SEC-charged fraud allegations.’ Furthermore, the report questioned ‘suspicious revenue-generating partnerships,’ suggesting they were designed to ’embellish the Company’s weakening position.’ A key allegation also stated that Tempus’ AI capabilities were overstated, and a recent revision in financial guidance revealed underlying weaknesses in its core operations.
In the wake of these revelations, several law firms, including Gibbs Law Group, the Law Offices of Frank R. Cruz, and the Law Offices of Howard G. Smith, have initiated or are investigating securities fraud class-action lawsuits on behalf of investors who suffered losses. The class period for one such lawsuit is identified as between August 6, 2024, and May 27, 2025.
The lawsuits allege that Tempus AI and its defendants made materially false and/or misleading statements and failed to disclose crucial adverse facts about the company’s business, operations, and prospects during the class period. Specific claims include that Tempus inflated the value of contract agreements, many of which were with related parties, non-binding, or self-funded. Concerns were also raised about the credibility of a joint venture with SoftBank, which allegedly gave the appearance of ’round-tripping’ capital to artificially boost Tempus’ revenue. Additionally, the acquired company Ambry was cited for having a business model based on aggressive and potentially unethical billing practices, risking scrutiny and unsustainability. The lawsuits further claim that AstraZeneca reduced its financial commitments to Tempus through a questionable ‘pass-through payment’ via a joint agreement involving Tempus and Pathos AI. These issues collectively indicated weaknesses in core operations and revenue prospects, rendering the defendants’ positive statements about the company’s outlook materially misleading.
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Investors who acquired Tempus AI common stock during the specified period have been urged to contact legal counsel, with an August 12, 2025, deadline set for participation as a lead plaintiff in one of the securities fraud class actions.
