Tempus AI Plunges 6.85 as 950M Volume Ranks 82nd Amid Legal and Financial Turmoil

On August 19, 2025, Tempus AI (TEM) closed with a 6.85% decline, trading at a volume of $0.95 billion, ranking 82nd in market activity. The stock’s performance was heavily influenced by mounting legal and financial pressures.

Recent developments reveal multiple class-action lawsuits alleging Tempus inflated contract values, misrepresented AI capabilities, and failed to disclose adverse operational risks. These claims have eroded investor confidence, compounding existing financial strains. The company reported a net loss of $43 million, with pretax margins at -29.2%, highlighting persistent profitability challenges. A leverage ratio of 5.3 further underscores structural vulnerabilities.

Legal scrutiny over billing practices and joint venture disclosures has intensified market skepticism. Analysts note that unresolved litigation could delay transparency efforts critical to restoring stakeholder trust. The stock’s trajectory reflects a broader struggle between operational potential and credibility concerns, with recent trading patterns showing heightened volatility during legal updates.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day from 2022 to present delivered a 7.61% total return, with a 1-day return of 1.98%. However, the Sharpe ratio of 0.71 indicates limited risk-adjusted gains, suggesting the approach’s effectiveness remains constrained.