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TEMP.CN
id: 1623
Tempus AI ($TEM) IPO Misrepresentations, Weak Financials, and Investor Deception Case
Investors can submit applications for the lead plaintiff role.
N.D. Illinois
Court1:25-cv-06534
Case number06/24/2024
Class period Start08/11/2025
Lead Plaintiff motion deadline- $TEM investors filed a claim against Tempus AI for inflating its valuation during the IPO and misleading investors about its financial health, customer base, and AI capabilities.
- After details emerged that Tempus overstated growth prospects, included low-margin pharma revenue in clinical forecasts, and lacked clarity on AI monetization, $TEM investors filed suit shortly after the IPO on June 14, 2024.
Case Details:
Tempus went public on June 14, 2024, raising over $400 million based on its pitch as an AI-driven precision medicine company. In its IPO filings, Tempus emphasized strong revenue growth, large-scale partnerships with top hospitals and pharma companies, and proprietary AI models expected to drive long-term value.
But the company failed to separate clinical diagnostics from pharma R&D revenue, which misled investors into believing the core testing business was profitable and scalable. Internal projections revealed that the clinical side had low gross margins and persistent losses. Analysts also flagged the company's AI technology as “largely unproven” in terms of revenue generation and regulatory impact.
Tempus had also booked revenue from non-recurring pharma contracts and presented them alongside core diagnostics revenue, giving the false impression of stable recurring income.
Just weeks after the IPO, several analysts questioned the sustainability of growth, and $TEM slid rapidly from its IPO price.
Based on these events, $TEM investors filed a claim against Tempus AI, accusing the company of the following:
- It misrepresented revenue composition by combining clinical and pharma segments.
- It overstated the commercial maturity and profitability of its AI technology
- It inflated growth pIt failed to disclose the lack of regulatory traction for its AI-based tools.
Considering all the representations, investors believe Tempus concealed key financial risks and overstated its value proposition to boost its IPO valuation.
Case Type
US Securities Class Action
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
06/14/2024
Filing date
06/12/2025
Lead Plaintiff Deadline
08/11/2025