Short-term rental management company Sonder has received a “deficiency
notification” from Nasdaq because the company has not yet filed its
fourth-quarter and full-year 2023 financial results.
The company announced March 15 that it had “identified
accounting errors related to the valuation and impairment of operating lease
right of use assets and related items for the fiscal years 2022 and 2023.”
Following the revelation of errors, Sonder’s stock price fell $2.10 per share, or 38.2%, to close at $3.40 per share on March 18.
Sunday
a New York-based law firm, the Rosen Law Firm, announced it is preparing a
class action investigation on behalf of shareholders into allegations Sonder
may have “issued materially misleading business information to the investing
public.”
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The Nasdaq notice came on April 2 and said the company is in
violation of its rule requiring Nasdaq-listed companies to “timely file” all
periodic reports with the U.S. Securities and Exchange Commission.
Sonder now has 60 calendar days from receipt of that warning
to submit a plan to regain compliance.
The company said in a statement that it “intends to submit a
compliance plan to Nasdaq and take the necessary steps to regain compliance
with Nasdaq’s listing rules as soon as practicable.”
In February
Sonder cut about 17% of its staff, or about 106 roles, and said it hoped to
achieve $11 million in annualized cost savings as a result of the cuts.
In
June 2022, just six months after it became a public company, Sonder
cut about 21% of its corporate employees and 7% of its front-line staff.
