Tempus AI Class Action Lawsuit: Breaking: Tempus AI Faces a Massive, Mind-blowing $50M Securities Lawsuit After Suffering Portfolio Decimation as the Truth Emerged [2025]

The report claims Tempus AI deceived investors about its financial health and operations, which could lead to major legal and financial risks. This case has become the seventh Tempus AI class action lawsuit filed in 2025. The short seller’s report pointed out serious flaws in Tempus AI’s core operations and cast doubt on the company’s latest financial guidance updates.

Investors who bought Tempus AI shares between August 6, 2024, and May 27, 2025 now have a chance to recover their losses. Anyone affected by these alleged deceptions has until August 12, 2025 to step up as lead plaintiffs in the Tempus AI class action lawsuit. A closer look at this case reveals the specific claims, how shareholders were affected, and what this means as AI companies face growing scrutiny over their claims and financial practices.

Shareholder Files $50M Lawsuit Against Tempus AI

A shareholder has started a major securities class action lawsuit against Tempus AI, seeking an estimated $50 million in damages. The Tempus AI lawsuit responds to claims that the company made false and misleading statements about its business operations, AI capabilities, and financial partnerships.

Complaint filed in Northern District of Illinois

The Tempus AI lawsuit officially landed in the United States District Court for the Northern District of Illinois on June 12, 2025. The case, Shouse v. Tempus AI, Inc., No. 25-cv-06534, presents a major legal challenge for this AI-enabled medical analytics company. Trevor Shouse, a Tempus stockholder during the relevant period, leads as the named plaintiff in this action.

Several law firms have joined the case. These firms now look for more affected shareholders to join the Tempus AI class action lawsuit.

The Tempus AI lawsuit claims Tempus AI broke federal securities laws by making false and misleading statements about its business operations and prospects. The filing also states the company didn’t disclose key adverse facts that investors needed to make informed decisions about buying Tempus AI stock.

Class period spans August 6, 2024 to May 27, 2025

The class period runs for about nine months, starting August 6, 2024, and ending May 27, 2025. During this time, the plaintiff claims Tempus AI misled investors who bought company stock.

The class action aims to represent everyone who bought or acquired Tempus AI securities during this timeframe. Affected investors must meet a key deadline – all potential lead plaintiffs need to file their court motions by August 12, 2025.

This deadline matters because lead plaintiffs usually shape the direction of the litigation and settlement talks. Courts tend to favor investors with the biggest financial losses when picking lead plaintiffs.

The class period stops on May 27, 2025 – just before Spruce Point Capital Management released its damaging report that sent the stock tumbling. This timing lets the case cover all investors who bought shares before the truth came out.

Defendants include CEO and CFO of Tempus AI

The Tempus AI class action lawsuit targets both Tempus AI and its top executives. Eric Lefkofsky, founder and CEO, and Jim Rogers, CFO, appear as individual defendants in the case.

Securities fraud cases often hold executives personally responsible for investor statements. The Tempus AI lawsuit claims these executives approved or made misleading statements during the class period.

The lawsuit states the defendants hid that “Tempus inflated the value of contract agreements, many of which were with related parties, included non-binding opt-ins and/or were self-funded”. It also points to problems with the company’s SoftBank venture, suggesting it created fake “round-tripping” capital to boost revenue.

The case also claims Tempus-acquired Ambry Genetics ran on “aggressive and potentially unethical billing practices”. Another allegation shows AstraZeneca cut back its financial commitments through questionable payment deals.

These claims raise serious doubts about how the company portrayed its core operations and revenue potential while defendants made optimistic public statements about Tempus AI’s business future.

Short Seller Report Triggers Stock Drop and Legal Action

A prominent investment research firm’s explosive report sparked the legal battle against Tempus AI. This triggered immediate financial fallout for shareholders and led to litigation.

Spruce Point Capital publishes critical report

Spruce Point Capital Management LLC released a detailed research report “The Tempest Surrounding Tempus AI” on May 28, 2025. The report raised serious concerns about Tempus AI’s business practices. The investment management firm specializes in forensic research and short-selling. They predicted Tempus shares could drop by 50-60%, putting the price between $26.35-$32.95 per share.

The report revealed troubling issues about Tempus’s operations. It questioned the company’s management history, financial reporting, and strategic collaborations. Spruce Point highlighted how Tempus founder Eric Lefkofsky and his team “have a history of promoting disruptive technology companies, cashing out early, and leaving public shareholders with losses or lackluster returns”.

Stock price falls nearly 20% on May 28, 2025

The report’s publication sent Tempus AI’s stock price into a nosedive. The shares dropped $12.67, a 19.2% decline, closing at $53.20 that day. This massive drop wiped out billions in shareholder value. The stock had previously closed at $65.87.

The market reacted swiftly. The stock had already fallen 18.7% by early afternoon while the broader market stayed flat. This dramatic decline happened even though established organizations like AstraZeneca, Henry Ford Health, and Mayo Clinic were using Tempus AI’s technology.

Report alleges inflated AI claims and financial misstatements

The report’s most damaging claim suggested Tempus had overstated its AI capabilities. The company rebranded from “Tempus Labs” to “Tempus AI” before its IPO. However, it only made $12.40 million from AI applications in 2024 – just 2% of total revenues. This contradicted the company’s AI-focused marketing strategy.

The report also flagged “aggressive accounting and financial reporting”. It questioned a joint venture between Tempus and SoftBank that appeared to “round-trip” capital to create artificial revenue. Another allegation focused on Tempus-acquired Ambry Genetics. The report claimed its business model relied on “aggressive and potentially unethical billing practices”.

Spruce Point also scrutinized Tempus’s partnership with AstraZeneca. They suggested the pharmaceutical giant had reduced its financial commitments through a questionable “pass-through payment” deal between Tempus and Pathos AI. The report pointed out that Tempus’s revised financial guidance showed weakness in its core operations.

These allegations created a troubling picture of a company that might have misled investors about its business model’s fundamental aspects. This set the stage for the Tempus AI class action lawsuit that followed.

Plaintiffs Allege Misleading AI Claims and Revenue Practices

The Tempus AI class action lawsuit centers on four major allegations that reveal concerning issues about the company’s business practices and what it told investors.

Tempus AI accused of overstating AI capabilities in Tempus AI Class Action Lawsuit

The plaintiffs’ main argument shows that Tempus “branded itself as an AI company despite little history of generating significant revenues from AI solutions”. The company changed its name from Tempus Labs to Tempus AI before its June 2024 IPO. Yet it only generated $12.40 million from AI applications in 2024 – just 2% of its total revenue. The Tempus AI class action lawsuit reveals that Tempus “generated most of its revenue from acquisitions, genomic testing, and data licensing agreements”.

Alleged round-tripping with SoftBank joint venture in Tempus AI Lawsuit

The Tempus AI class action lawsuit points out that Tempus AI’s joint venture with SoftBank Group Corporation raised red flags about financial manipulation. The plaintiffs claim this partnership “gave the appearance of ’round-tripping’ capital to create revenue for Tempus AI”. Round-tripping creates artificial revenue through circular transactions without real business activity. This practice reportedly put the “credibility and substance” of the partnership at risk.

Ambry Genetics acquisition under scrutiny in Tempus AI Lawsuit

The $600 million Ambry Genetics deal ($375 million in cash and $225 million in equity) faces serious questions. The lawsuit claims Ambry operated with “aggressive and potentially unethical billing practices that risked scrutiny and unsustainability”. These practices reportedly weakened Tempus’s actual operational strengths and could expose the company to regulatory risks.

AstraZeneca partnership allegedly misrepresented in Tempus AI Lawsuit

The Tempus AI class action lawsuit challenges Tempus’s claims about its relationship with pharmaceutical giant AstraZeneca. The company “repeatedly” stated that contract values with life sciences companies like AstraZeneca were “secure and expanding”. The lawsuit states that AstraZeneca had reduced its financial support to Tempus AI through a questionable “pass-through payment” via a joint agreement with Pathos AI. This arrangement masked AstraZeneca’s decreased financial commitment.

These allegations suggest Tempus AI deceived investors about key parts of its business model, from its AI capabilities to its partnerships and acquired businesses. The plaintiffs believe these misrepresentations created a misleading story about Tempus’s technology strength and financial health.

Court Process Begins With Lead Plaintiff Deadline in the Tempus AI Class Action Lawsuit

The Tempus AI class action lawsuit has reached a significant phase. Affected investors must now follow strict legal deadlines and procedural requirements.

Deadline to file for lead plaintiff is August 12, 2025

Investors who bought Tempus AI common stock during the designated Class Period face a vital deadline. The court must receive all motions for lead plaintiff in the Tempus AI class action lawsuit by August 12, 2025. The Private Securities Litigation Reform Act of 1995 set this non-negotiable date. Any investor who bought shares during the Class Period can seek appointment as lead plaintiff. Investors who miss this deadline might lose their right to recover losses.

Steps to become lead plaintiff

Becoming alead plaintiff requires these specific steps:

• Submit a court motion requesting lead plaintiff appointment before the August 12 deadline
• Show you have the largest financial stake in the class relief sought
• Prove your case is typical and you can adequately represent the class
• Pick a law firm to handle the case

If you suffered substantial losses and wish to serve as lead plaintiff of the Tempus AI class action lawsuit, or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at tmiles@timmileslaw.com.

Expected timeline: motion to dismiss, discovery, settlement

The Tempus AI lawsuit will likely follow a predictable but long timeline. The court will issue a scheduling order about 30-45 days after the filing deadline, once they appoint the lead plaintiff. This order usually gives 60 days to file a consolidated complaint. Defendants then get 45-60 days to file a motion to dismiss.

The motion-to-dismiss process takes almost a year from when the original complaint was filed. The case moves into discovery if this motion fails. Discovery includes document exchanges, depositions, and third-party subpoenas.

The case might not reach a conclusion until 2028. Parties typically start settlement talks after 2.5-3 years from the first filing. All the same, most securities class actions end up with settlements.

AI-Washing Lawsuits Rise Across Tech Sector

AI-related securities litigation has reached record levels over the last several years. Investors have grown skeptical of companies that might be overstating their artificial intelligence capabilities. This practice, known as “AI-washing,” reminds us of the earlier “greenwashing” trend where businesses inflated their environmental credentials.

Tempus AI joins growing list of AI-washing cases

The Tempus AI lawsuit shows how AI-related securities litigation continues to expand. Stanford Law School Securities Class Action Clearinghouse reports seven AI-related securities class action lawsuits filed in 2025, following fifteen cases in 2024. Companies often face accusations of overstating their AI capabilities to attract investor interest. Data engineering company Innodata learned this the hard way when its stock price dropped 30% after allegedly misleading investors about its “proprietary, state-of-the-art” AI platform Goldengate. Evolv Technologies and Oddity Tech have faced similar claims about their AI-powered products.

Courts skeptical of short-seller-based complaints

These lawsuits face major obstacles. Courts tend to question securities claims that rely mainly on short-seller reports. Judges worry about short sellers’ financial motives and their use of anonymous sources. A district court threw out a securities lawsuit against DraftKings in January 2023. The court criticized the “threadbare sourcing and conclusory quality” of the claims that came from short-seller allegations. This ruling might shape how the Tempus AI case moves forward, since Spruce Point Capital’s report supports many allegations.

Implications for AI companies and investor trust

The surge in AI-washing litigation warns the technology sector that transparency can’t be optional. Investors now just need better metrics for AI-driven revenue and look more closely at partnerships. Companies risk both regulatory and legal consequences. The SEC fined two investment advisers $400,000 for AI washing in March 2025. The Federal Trade Commission launched “Operation AI Comply” and secured five settlements involving deceptive AI claims. False claims about AI capabilities damage consumer and investor trust. This could slow down real progress by creating unrealistic expectations and industry-wide doubt.

Conclusion: The Growing Scrutiny of AI Claims and Investor Protection

The Tempus AI class action lawsuit marks a defining moment for the company and the AI sector as a whole. The $50 million lawsuit centers on claims about misrepresented AI capabilities, questionable financial partnerships, and potentially unethical billing practices. The damage became clear when Tempus AI’s stock price plunged 19.2% after Spruce Point released its damaging report.

This goes well beyond one company’s legal issues. Tempus AI’s lawsuit points to a worrying trend of “AI-washing” in tech companies of all sizes. Many businesses rush to rebrand as AI innovators despite making little money from actual AI applications. While courts often view cases based on short-seller reports with skepticism, legal precedents suggest these cases face major obstacles.

Investors need to act by the August 12, 2025 deadline to file as lead plaintiffs. The case will likely follow the usual securities litigation path – motion to dismiss, discovery, and possible settlement – and could run until 2028. These securities class actions typically end in settlements rather than going to trial.

AI-washing litigation has changed how investors look at tech companies. Companies must be open about their AI capabilities, revenue sources, and business partnerships to keep investor trust. The SEC and FTC have started targeting misleading AI claims, which suggests more oversight is coming.

Tempus AI’s situation serves as a wake-up call. Companies need real technology and proven revenue streams to back their AI claims. Investors should get a full picture of a company’s AI implementation instead of trusting marketing claims. The Tempus AI class action lawsuit will shape the outcome on how courts handle future AI-related securities fraud cases and might set vital precedents in this new area of litigation.

Frequently Asked Questions about the Tempus AI Lawsuit

Q1. What is the Tempus AI about? The lawsuit alleges that Tempus AI misled investors about its AI capabilities, financial partnerships, and revenue practices, resulting in a $50 million class action suit for securities fraud.

Q2. When is the deadline for investors to file as lead plaintiffs in the Tempus AI lawsuit? The deadline for investors to file as lead plaintiffs in the Tempus AI class action lawsuit is August 12, 2025.

Q3. What triggered the significant drop in Tempus AI’s stock price? Tempus AI’s stock price fell nearly 20% on May 28, 2025, following the publication of a critical report by Spruce Point Capital Management that raised concerns about the company’s operations and financial reporting.

Q4. Who are the defendants named in the Tempus AI lawsuit? The lawsuit names Tempus AI as a corporate entity, along with its CEO Eric Lefkofsky and CFO Jim Rogers as individual defendants.

Q5. How does the Tempus AI lawsuit relate to the broader trend of AI-related securities litigation? The Tempus AI class action lawsuit is part of a growing trend of “AI-washing” cases, where companies are accused of overstating their AI capabilities to capitalize on investor enthusiasm. It’s the seventh AI-related securities class action filed in 2025, reflecting increased scrutiny of AI claims in the tech sector.