Sonder Holdings Inc.
Case Overview
43 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 06/10/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: Sonder Holdings Inc. |
Court: | Court: District of Colorado |
Case Number: | Case Number: 2:24cv02952 |
Class Period: | Class Period: 03/16/2023 - 03/15/2024 |
Ticker: | Ticker: SOND |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Sonder Holdings, Inc. (“Sonder” or the “Company”) (NASDAQ: SOND) securities during the period of March 16, 2023 through March 15, 2024, inclusive (“the Class Period”). Investors have until June 10, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On March 15, 2024, Sonder disclosed the discovery of accounting mistakes associated with its assessment and devaluation of operating lease assets and connected accounts for the fiscal years 2022 and 2023. The Company indicated the need for extra time to amend the financial statements for these years, noting that these revisions were anticipated to escalate the Company's total net loss and loss per share for the affected periods. On this news, the price of Sonder shares declined by $2.10, or approximately 38.18%, from $5.50 per share on March 15, 2024 to close at $3.40 on March 18, 2024.
The lawsuit alleges that the Company made materially false and/or misleading statements and/or failed to disclose that: (1) Sonder failed to disclose all issues with its internal controls; (2) Sonder's financial statements for the 2022 Annual Report and the interim periods ended March 31, June 30, and September 30, 2023 contained material errors in the way Sonder accounted for the valuation and impairment of operating lease right-of-use (ROU) assets; (3) as a result, Sonder would need to restate its previously issued financial statements for those periods; and (4) as a result, the Company's statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On March 15, 2024, Sonder disclosed the discovery of accounting mistakes associated with its assessment and devaluation of operating lease assets and connected accounts for the fiscal years 2022 and 2023. The Company indicated the need for extra time to amend the financial statements for these years, noting that these revisions were anticipated to escalate the Company's total net loss and loss per share for the affected periods. On this news, the price of Sonder shares declined by $2.10, or approximately 38.18%, from $5.50 per share on March 15, 2024 to close at $3.40 on March 18, 2024.
The lawsuit alleges that the Company made materially false and/or misleading statements and/or failed to disclose that: (1) Sonder failed to disclose all issues with its internal controls; (2) Sonder's financial statements for the 2022 Annual Report and the interim periods ended March 31, June 30, and September 30, 2023 contained material errors in the way Sonder accounted for the valuation and impairment of operating lease right-of-use (ROU) assets; (3) as a result, Sonder would need to restate its previously issued financial statements for those periods; and (4) as a result, the Company's statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.