AI-Backed Healthcare Company Tempus AI Faces Shareholder Derivative Lawsuit Over Alleged Misrepresentations
August 22, 2025
CHICAGO — Tempus AI, a health technology company founded by Groupon billionaire Eric Lefkofsky, has been named as a nominal defendant in a shareholder derivative lawsuit filed in Illinois federal court on August 20, 2025. The suit, initiated by shareholder plaintiff Sarah Thompson, accuses multiple company executives of breaching their fiduciary duties by overstating Tempus AI’s artificial intelligence capabilities and inflating the value of its contracts with partners such as AstraZeneca and Pathos AI.
According to the complaint, Tempus AI, which specializes in AI-driven precision medicine, allegedly misled investors by exaggerating the functionality and readiness of its AI tools, which are designed to analyze clinical and molecular data to enhance patient care. The plaintiff claims that these misrepresentations artificially boosted the company’s stock value, harming long-term shareholder interests when the discrepancies came to light. The lawsuit further alleges that executives failed to implement adequate oversight systems, violating their duty of supervision under Delaware corporate law, where Tempus AI is incorporated.
The filing, surfaced by Law.com Radar, seeks to hold the company’s leadership accountable for reputational and financial damage to Tempus AI. It demands corporate governance reforms and unspecified monetary damages to be paid to the corporation, not the individual plaintiff, as is standard in derivative suits. The complaint also notes that a pre-suit demand on the board was deemed futile due to the directors’ alleged involvement or lack of independence.
Tempus AI, which went public in June 2024, has been a prominent player in the AI healthcare sector, leveraging its platform to support drug discovery and personalized treatment plans. However, the lawsuit raises concerns about the transparency of AI applications in healthcare, echoing broader industry debates about “AI-washing” and the ethical use of emerging technologies. Legal experts suggest this case could spotlight the risks directors and officers face when deploying AI without robust oversight, particularly in high-stakes fields like healthcare.
A spokesperson for Tempus AI declined to comment on the pending litigation, stating that the company is reviewing the allegations. The case is expected to proceed through discovery, with potential implications for how AI-focused companies manage investor expectations and regulatory compliance.