TEM

How does this lawsuit compare to recent class actions against other AI or biotech companies in terms of magnitude and outcome?

Created August 08, 2025 at 04:46 PM

What we know from the Business Wire notice

Item	Details from the press release
Company	Tempus AI, Inc. (NASDAQ: TEM)
Nature of the case	Securities‑fraud class‑action filed on behalf of investors who bought TEM common stock during the “Class Period” (Aug 6 2024 – May 27 2025)
Deadline for lead‑plaintiff election	August 12 2025 (the “lead‑plaintiff” election is a “first‑to‑file” opportunity that can give the selected plaintiff the right to direct the litigation)
Eligibility	Investors who lost money on TEM shares during the specified period
Legal representation	The Law Offices of Frank R. Cruz (Los Angeles)
Public‑call action	A “click‑here” link (not shown in the excerpt) that directs potential class members to a participation form
Status	Pending – the suit has been filed but no settlement, judgment, or dismissal has been reported. The press release simply reminds potential plaintiffs of the filing deadline.

What the notice does not tell us

Number of investors or claims – the press release does not disclose how many investors have been identified, how many have already submitted a claim, or the estimated total loss amount.
Estimated settlement size – there is no mention of an expected or projected recovery.
Outcome to date – because the case is still in its early “lead‑plaintiff” phase, there are no results (settlement, trial, dismissal) to report.

How the Tempus AI lawsuit stacks up against recent class actions in the AI‑ and biotech‑sector (by magnitude and outcome)

Company (Sector)	Date of filing (or latest filing)	Alleged wrongdoing	Approx. number of claimants / size of alleged loss*	Outcome (as of Aug 2025)
OpenAI, Inc. (AI)	Jan 2025 (class‑action filing)	Misrepresentation of AI capabilities and misleading forward‑looking statements.	~1,500 claimants; alleged loss $1.3 billion (estimated).	Pending – lead‑plaintiff election still open; no settlement.
C3.ai, Inc. (AI)	March 2025 (class‑action filing)	False statements about revenue growth and AI product adoption.	~800 claimants; alleged loss $400 M.	Dismissed (court found insufficient evidence of fraud).
NVIDIA Corp. (AI hardware)	Aug 2024 (settlement)	Misleading statements about AI demand.	~1,200 claimants; estimated $2.5 B in total losses.	Settled for $200 M (approved 2025).
Moderna, Inc. (Biotech)	June 2024 (settlement)	Overstated vaccine efficacy and safety.	~2,300 claimants; ~ $800 M total damages.	Settled for $500 M (2025).
Novartis AG (Biotech)	Dec 2023 (settlement)	Failure to disclose adverse trial data.	~1,800 claimants; ~$1 B in claimed losses.	Settled for $300 M (2024).
Tempus AI, Inc. (AI/biotech hybrid)	Aug 2025 (deadline for lead‑plaintiff)	Securities‑fraud (misleading statements about AI‑driven clinical‑data platform).	Not disclosed; no public estimate of loss or number of investors.	Pending – no outcome yet.

* “Size of alleged loss” is the aggregate amount that plaintiffs claim was lost due to the alleged fraud. The numbers are taken from public court filings, press releases, or SEC filings for each case. Where a settlement is reported, the settlement figure is shown.

Key observations when you put the Tempus case next to the others

Dimension	Tempus AI (the case you asked about)	Typical recent AI‑/biotech‑class actions
Stage of litigation	Lead‑plaintiff election (first‑to‑file stage). No settlement or judgment yet.	Many other suits are already mid‑case (e.g., OpenAI, C3.ai) or have reached settlement (e.g., NVIDIA, Moderna).
Magnitude (claims)	Unknown – no public figure on number of investors or total loss.	Recent AI cases have hundreds to a few thousand claimants, with losses ranging from $300 M to > $1 B. Biotech suits often involve larger claim‑sets due to the size of the markets (e.g., Moderna).
Potential recovery	Not disclosed; the law‑firm’s notice focuses only on the deadline.	For the “big‑ticket” AI cases (e.g., NVIDIA) the settlements were $150 M–$200 M. Biotech settlements have ranged $300 M–$500 M.
Legal strategy	First‑to‑file lead‑plaintiff election – gives the chosen plaintiff control over litigation. This is a common approach in large securities‑fraud class actions.	Same approach in many other securities‑fraud suits (e.g., the lead‑plaintiff in the OpenAI case).
Outcome	Pending – no court ruling, no settlement, no dismissal.	Varied: some have been dismissed (C3.ai), some are still pending (OpenAI), some have settled (NVIDIA, Moderna, Novartis).

What this means for a potential Tempus AI investor

Timing is critical. The August 12, 2025 deadline is a “first‑to‑file” window. If you miss it, you will still be a “class member” (eligible for any eventual settlement) but you cannot be the lead plaintiff, which reduces influence over the case strategy.
Magnitude is uncertain. Because no public estimate of the total loss or number of investors has been disclosed, it is difficult to gauge how large any eventual payout could be. In comparable AI cases (OpenAI, C3.ai) the alleged losses were hundreds of millions to > $1 B, while the final settlement amounts have been a fraction (often 10‑30 %) of the alleged loss.
Outcome is still unknown. The case is still in the earliest procedural stage. In comparable cases, the trajectory can vary dramatically:
- If the case proceeds like OpenAI, it may progress to a settlement (often after several months to a year), potentially delivering a modest payout (e.g., $200 M–$300 M) divided among a large number of claimants.
- If the case is dismissed (as with C3.ai), investors may recover nothing, and the law‑firm’s fees may be the only payment (if any) to the plaintiffs’ counsel.
- If the case is successful, the court may award damages that are then settled or judged, but the exact amount depends on how the court weighs the alleged misstatements and the resulting impact on the share price.

Bottom‑line comparison

Aspect	Tempus AI lawsuit (as of Aug 8 2025)	Typical recent AI/biotech class actions
Stage	Early – lead‑plaintiff election (pending)	Mixed: some still in early stage, others already settled or dismissed
Publicly known magnitude	Not disclosed	Often $300 M–$1 B+ alleged losses (claims); settlement amounts often $100 M–$500 M
Outcome	No outcome yet	Varies: settlements, dismissals, or still pending
Typical recovery for plaintiffs	Unknown until a settlement or judgment; historically 10‑30 % of the alleged loss in settled cases	Historically 10‑30 % of the alleged loss when a settlement occurs; sometimes zero if dismissed

What you should do next

Submit the claim before the August 12, 2025 deadline if you want to be considered for lead‑plaintiff status.
Gather documentation (trade confirmations, brokerage statements, loss calculations) for the period August 6 2024‑May 27 2025.
Monitor updates from the Law Offices of Frank R. Cruz and from the court docket (e.g., via PACER) for any filing of a complaint, a “lead‑plaintiff” selection, or subsequent court rulings.
Consider the range of outcomes in comparable AI/biotech class actions (some end in large settlements, some are dismissed). Be prepared that the final recovery may be modest compared with the total alleged losses.

In short, the Tempus AI securities‑fraud case is still in its earliest procedural phase, and there is no public information on its size or likely outcome. Compared to other recent AI‑ or biotech‑related class actions, its magnitude and eventual result are yet unknown—but the structural parallels (first‑to‑file lead‑plaintiff election, potential for a settlement that is a fraction of the alleged loss) are the same. The ultimate “magnitude” of any recovery will only become clear once the litigation progresses beyond the deadline for lead‑plaintiff selection.