Tempus investors file lawsuit against short-selling institution's AI and CEO allegations.

A proposed class action lawsuit alleges that Tempus AI misled investors about its trading value and artificial intelligence capabilities, concealing weaknesses in its operations and revenue prospects. According to a complaint filed Thursday in the U.S. District Court for the Northern District of Illinois, a report from a short-selling firm on May 28 accused Tempus of overstating its AI-driven revenue and questioning the work experience of its executives, causing the stock price to fall more than 19% that day, closing at $53.20. According to compiled data, this was the largest single-day drop in the stock price of this AI healthcare analytics company since its IPO in June 2024.