Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Sonder Holdings Inc. (“Sonder” or the “Company”) (NASDAQ: SOND) securities between March 16, 2023 and March 15, 2024, inclusive (the “Class Period”). Sonder investors have until June 10, 2024 to file a lead plaintiff motion.
Investors suffering losses on their Sonder investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On March 15, 2024, Sonder disclosed that it would be unable to timely file its fourth quarter and full year 2023 financial results, and that it had determined that the Company’s financial statements for the year ended December 31, 2022 and the first three quarters of 2023 “should no longer be relied upon due to accounting errors related to the valuation and impairment of operating lease right of use assets and related items.” Additionally, the Company stated that it anticipates an ongoing assessment “will result in one or more material weaknesses in the Company’s internal control over financial reporting during the applicable periods, in addition to the Company’s previously identified and reported material weaknesses.”
On this news, Sonder’s stock price fell $2.10, or 38.2%, to close at $3.40 per share on March 18, 2024, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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 the Company accounted for the valuation and impairment of operating lease ROU assets; (3) as a result, Sonder would need to restate its previously issued financial statements for those periods; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Sonder securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240412594875/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
