Key Takeaways:
The Law Offices of Frank R. Cruz is investigating Cerebras Systems Inc. for securities law violations after its shares plunged 20% following first-quarter results.
"Cerebras reported a loss of $0.22 per share for the first quarter, missing estimates," the firm said in a statement.
The AI chipmaker went public May 14, selling 30 million shares at $185 each. On June 23, it disclosed it was renting systems back from an existing customer to meet demand, a move the company said would depress margins. The additional cost of renting third-party capacity will depress core Cloud and other services margin temporarily from current levels, Cerebras said.
The stock fell $44.46 to close at $182.26 on June 24, erasing gains since the IPO. The investigation focuses on whether Cerebras issued false or misleading statements and failed to disclose information pertinent to investors.
The Schall Law Firm has also announced a separate investigation into the company, representing a second legal front for Cerebras. Both firms are urging shareholders who suffered losses to contact them.
The twin investigations put Cerebras under heightened scrutiny just weeks after its market debut. Investors will watch for any SEC subpoena or shareholder lawsuit filings in the coming weeks.
This article is for informational purposes only and does not constitute investment advice.
