Robbins LLP is Investigating the Allegations that Sonder Holdings Inc. (SOND) is Restating Previously Issued Financial Statements Due to Accounting Errors
Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Sonder Holdings Inc. (NASDAQ: SOND) securities between March 16, 2023 and March 15, 2024. Sonder Holdings engages in the hospitality business, operating and managing properties for leisure travelers and families, digital nomads, and business travelers in North America, Europe, and the Middle East.
The Allegations
According to the complaint, during the class period, defendants 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 the Company accounted for the valuation and impairment of operating lease ROU assets; and (3) as a result, Sonder would need to restate its previously issued financial statements for those periods.
On March 15, 2024, Sonder issued a press release announcing the Company’s audited financial statement for the 2022 Annual Report, and unaudited consolidated financial statements in 2023, should no longer be relied upon due to “accounting errors related to the valuation and impairment of operating lease ROU assets and related items.” On 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, damaging investors.
What Now: You may be eligible to participate in the class action against Sonder Holdings Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by June 10, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
