| COMPANY |
Sonder Holdings Inc. |
| COURT |
United States District Court for the Central District of California |
| CASE NUMBER |
24-cv-02952 |
| JUDGE |
The Hon. Otis D. Wright, II |
| CLASS PERIOD |
March 16, 2023 through March 15, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS JUNE 10, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit has been filed on behalf of those who purchased or acquired Sonder Holdings Inc. (“Sonder”) (NASDAQ: SOND) securities between March 16, 2023 and March 15, 2024, both dates inclusive (the “Class Period”).
On March 15, 2024, during after-market hours, Sonder issued a press release announcing that the company's audited financial statement for its 2022 Annual Report, as well as the company's unaudited consolidated financial statements in 2023 (collectively with the 2022 Annual Report, the "Affected Financial Statements"), should no longer be relied upon due to "accounting errors related to the valuation and impairment of operating lease ROU [right of use] assets and related items." Sonder stated that it "intends to restate the Affected Financial Statements" and that it "expects that the restatements will increase the company's overall net loss and loss per share in the impacted periods."
Following this news, Sonder's stock price fell $2.10 per share, or 38.2%, to close at $3.40 per share on March 18, 2024.
The complaint alleges that, throughout the Class Period, Defendants 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 assets; (3) as a result, Sonder would need to restate its previously issued financial statements for those periods; and (4) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.