Bragar Eagel & Squire, PC reminds investors that class action lawsuits have been filed… | News

NEW YORK, March 27, 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 TaskUs, Inc. (NASDAQ: TASK), Gatos Silver, Inc. (NYSE: GATO), MP Materials Corp. (NYSE: MP) and Cerence, Inc. (NASDAQ: CRNC). 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.

TaskUs, Inc. (NASDAQ:TASK)

Course period: June 11, 2021 – January 19, 2022

Lead Applicant Deadline: April 25, 2022

The complaint alleges that throughout the class action period, defendants asserted that TaskUs had “industry-leading growth and profitability” and a “simply massive” market opportunity. The complaint further alleges that the defendants touted the size of the company’s workforce and “low levels of employee attrition,” which “leads to lower hiring and training costs.” “.

These statements were materially false and misleading. On January 20, 2022, Spruce Point Capital Management, LLC (“Spruce Point”) released a report titled “Bull Case Content Moderation” based on its “financial and accounting review” of TaskUs. Spruce Point found that TaskUs “has a pattern of exaggerated and inflated business claims, including revenue, and conceals financial constraints with reduced disclosures, hand-picked market data, and non-standard key performance indicators.” Additionally, Spruce Point said, “We find evidence of growing tension in the relationship ‘between TaskUs and its largest customer Facebook’ and believe margins and cash flow are expected to contract more than expected.” Spruce Point also stated, “We are seeing a pattern of [TaskUs] embellishing its workforce size and making overly optimistic revenue growth claims.

This disclosure led to a dramatic decline in the value of TaskU’s shares, causing significant harm to investors.

For more information about the TaskUs class action lawsuit, visit: https://bespc.com/cases/TASK

Gatos Silver, Inc. (NYSE: GATO)

Class Period: October 28, 2020 IPO; October 28, 2020 – January 25, 2022

Lead Applicant Deadline: April 25, 2022

The dispute relates to statements by Gatos regarding its Cerro Los Gatos (“CLG”) mine located in Chihuahua, Mexico, including the Company’s estimates in its technical report dated July 1, 2020 (“2020 Technical Report”) that the CLG deposit “contains approximately 9.6 million diluted tonnes of proven and probable mineral reserves.

According to the complaint, the defendants made materially false and misleading statements and failed to disclose material adverse facts, including: (1) that the 2020 Technical Report contained errors; and (2) that, among other things, GLG’s mineral reserves had been overestimated by up to 50%.

The truth came to light on January 25, 2022, when Gatos revealed that during a resource and reserve update process, which included a detailed reconciliation of recent production performance, the company concluded that there were errors in the 2020 technical report, as well as indicate that there is an overestimation in the existing resource model. Accordingly, the Company has estimated a potential reduction in the metal grade of CLG’s Mineral Reserves ranging from 30% to 50% of the metal grade and cautioned that resource and reserve estimates should not be relied upon. minerals in the 2020 technical report.

This revelation sent Gatos’ stock price plummeting by as much as 70% on January 26, 2022.

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

MP Materials Corp. (NYSE:MP)

Course period: May 1, 2020 – February 2, 2022

Lead Applicant Deadline: April 25, 2022

A class action lawsuit has been filed on behalf of certain shareholders of MP Materials Corp f/k/a Fortress Value Acquisition Corp. The filed complaint alleges that the defendants made materially false and/or misleading statements and/or failed to disclose that: (i) Value Acquisition Corp. (“FVAC”) had overstated its due diligence efforts and expertise in identifying target companies for acquisition; (ii) FVAC performed inadequate due diligence on Legacy MP Materials prior to the business combination, or ignored important red flags regarding, among other things, Legacy MP Materials’ management, compliance policies and profitability of Mountain Pass; (iii) as a result, the Company’s future business and financial prospects after the business combination were overstated; (iv) MP Materials engaged in an abusive transfer pricing scheme with a related party in the People’s Republic of China to artificially inflate the Company’s profits; (v) MP Materials ore at the Mountain Pass rare earth mine and processing facility was not economically viable to harvest for rare earth metals; and (vi) as a result, the Company’s public statements were materially false and misleading at all material times.

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

Cerence, Inc. (NASDAQ: CRNC)

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

Lead Applicant Deadline: April 26, 2022

Cerence is a Burlington, MA-based company focused on creating AI-powered 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 concern for 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 about the Cerence class action, visit: https://bespc.com/cases/CRNC

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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