Cerebras Systems, Inc. (NASDAQ: CBRS)

This investigation is for anyone who acquired securities in Cerebras Systems, Inc. (NASDAQ: CBRS) prior to October 28, 2026.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that, in the Prospectus to the Company’s IPO, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by omitting that the Company elected to accelerate customer backlog by renting back its own systems from an existing customer while it constructed more systems.

On June 24, 2026, Cerebras released its first quarter 2026 financial results, missing estimates, and disclosing that “[f]or the rest of 2026, in order to accelerate [the Company’s] ability to service the significant near-term demand in [its] contracted backlog, [it has] chosen to make more capacity available sooner by temporarily renting [its] own systems back from an existing customer while [it] aggressively build[s] out and deploy[s] [its] own data center capacity.” Further, the Company revealed that “[t]he additional cost of renting third-party capacity will depress core Cloud and other services margin temporarily from current levels.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on October 28, 2026, Culper Research published a report regarding Cerebra’s chips’ durability and its depreciation assumptions. The report alleges that Cerebras’s wafer-scale chips last only 1.5 to 2.5 years in the field due to thermal expansion issues from continuous “dummy operations” so the chips never cool. Culper says draft IPO filings through December 2025 gave equipment useful lives of 1.5 to 3 years, and that four months later Cerebras nearly doubled them to 3 to 5 years, inflating margins. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume and trades for less today than it did at the Company’s IPO.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Cerebras Systems, Inc. (NASDAQ: CBRS) prior to October 28, 2026 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.