Xiao-I Corporation Faces Class Action Lawsuit Over Alleged Securities Fraud
13 Sources
[1]
AIXI INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that Xiao-I Corp. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit - XIAO-I (NASDAQ:AIXI)
NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Xiao-I Corp. ("Xiao-I" or "the Company") AIXI and certain of its officers. Class
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INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Xiao-I Corporation (AIXI) Investors - XIAO-I (NASDAQ:AIXI)
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of Xiao-I Corporation ("Xiao-I" or the "Company") AIXI investors who purchased: (a) American depository shares ("ADSs") pursuant and/or traceable to the Offering Documents issued in connection with the
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AIXI INVESTOR ALERT: Edelson Lechtzin LLP Urges Xiao-I Corporation (NASDAQ: AIXI) Shareholders With Substantial Losses To Seek Leadership For The Pending Securities Fraud Class Action - XIAO-I (NASDAQ:AIXI)
NEWTOWN, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Edelson Lechtzin LLP, a leading class action law firm, is investigating securities fraud claims on behalf of all investors of Xiao-I Corporation AIXI that purchased or otherwise acquired (a) Xiao-I American depository shares ("ADSs") pursuant and/or
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Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces the Filing of a Securities Class Action on Behalf of Xiao-I Corporation (AIXI) Investors - XIAO-I (NASDAQ:AIXI)
Glancy Prongay & Murray LLP ("GPM"), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of Xiao-I Corporation ("Xiao-I" or the "Company") AIXI investors who purchased: (a) American depository shares ("ADSs") pursuant and/or traceable to
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Xiao-I Corporation Securities Fraud Class Action Lawsuit Pending: Contact Levi & Korsinsky Before December 16, 2024 to Discuss Your Rights - AIXI
https://zlk.com/pslra-1/xiao-i-corporation-lawsuit-submission-form?prid=109164&wire=4 AIXI investors may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500. CASE DETAILS: The filed complaint alleges that defendants made false statements and/or
[6]
The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Xiao-I Corporation Investors - XIAO-I (NASDAQ:AIXI)
The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Xiao-I Corporation ("Xiao-I" or the "Company") AIXI investors who purchased: (a) American depository shares ("ADSs") pursuant and/or traceable
[7]
Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Xiao-I Corporation (AIXI) - XIAO-I (NASDAQ:AIXI)
Law Offices of Howard G. Smith reminds investors of the upcoming December 16, 2024 deadline to file a lead plaintiff motion in the case filed on behalf of Xiao-I Corporation ("Xiao-I" or the "Company") AIXI investors who purchased: (a) American depository shares ("ADSs") pursuant and/or traceable
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SHAREHOLDER ALERT: Class Action Lawsuit Filed on Behalf of Xiao-I Corporation (AIXI) Investors - Holzer & Holzer, LLC Encourages Investors With Significant Losses to Contact the Firm - XIAO-I (NASDAQ:AIXI)
ATLANTA, Oct. 16, 2024 (GLOBE NEWSWIRE) -- A shareholder class action lawsuit has been filed against Xiao-I Corporation ("Xiao-I" or "the Company") AIXI. The lawsuit alleges that Xiao-I's Offering Documents were negligently prepared and that Defendants' statements throughout the Class Period were
[9]
Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces the Filing of a Securities Class Action on Behalf of Xiao-I Corporation (AIXI) Investors
Glancy Prongay & Murray LLP ("GPM"), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of Xiao-I Corporation ("Xiao-I" or the "Company") (NASDAQ: AIXI) investors who purchased: (a) American depository shares ("ADSs") pursuant and/or
[10]
Shareholders that lost money on Xiao-I Corporation(AIXI) should contact The Gross Law Firm about pending Class Action - AIXI - XIAO-I (NASDAQ:AIXI)
NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Xiao-I Corporation AIXI. Shareholders who purchased shares of AIXI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment.
[11]
Xiao-I Corporation Class Action Notice: Shareholder Rights Law Firm Robbins LLP Reminds Investors of the Lead Plaintiff Deadline in the AXIX Class Action - XIAO-I (NASDAQ:AIXI)
SAN DIEGO, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds shareholders that a class action was filed on behalf of all investors and entities that purchased or otherwise acquired Xiao-I Corporation AIXI ADSs pursuant and/or traceable to the Company's initial public offering ("IPO") on March
[12]
Faruqi & Faruqi Reminds Xiao-I Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of December 16, 2024 - AIXI - XIAO-I (NASDAQ:AIXI)
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Xiao-I To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $50,000 in Xiao-I as a result of purchasing (a) Xiao-I American depository
[13]
Investor Notice: Robbins LLP Informs Stockholders of the Class Action Lawsuit Filed Against Xiao-I Corporation - XIAO-I (NASDAQ:AIXI)
SAN DIEGO, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Robbins LLP announces that a shareholder filed a class action on behalf of all investors and entities that purchased or otherwise acquired Xiao-I Corporation AIXI ADSs pursuant and/or traceable to the Company's initial public offering ("IPO") on March 9,
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Multiple law firms have filed class action lawsuits against Xiao-I Corporation, alleging securities fraud related to its IPO and subsequent financial disclosures. Investors claim the company misled them about its AI capabilities and financial health.
Class Action Lawsuit Filed Against Xiao-I Corporation
Multiple law firms have announced the filing of class action lawsuits against Xiao-I Corporation (NASDAQ: AIXI), a Shanghai-based artificial intelligence enterprise. The lawsuits allege that Xiao-I and certain of its officers violated federal securities laws by making false and misleading statements regarding the company's business, operations, and prospects
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.Allegations of Securities Fraud
The complaints claim that Xiao-I:
- Downplayed risks related to Chinese shareholders' non-compliance with Circular 37 Registration
- Failed to comply with Generally Accepted Accounting Principles (GAAP)
- Overstated efforts to remediate material weaknesses in financial controls
- Understated the impact of significant R&D expenses on business and financial results
- Exaggerated its AI capabilities and ability to compete in the AI market
These alleged misrepresentations are said to have occurred in connection with the company's March 2023 initial public offering (IPO) and throughout the period from March 9, 2023, to July 12, 2024
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.Financial Performance and Stock Price Decline
The lawsuits highlight several key financial events:
- September 25, 2023: Xiao-I reported a net loss of $18.8 million for H1 2023, with a 355% increase in total operating expenses and a 708% rise in R&D expenses
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. - April 30, 2024: The company announced FY 2023 revenues of $59.2 million and a net loss of $27 million, with R&D expenses growing by 118.3% year-over-year
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. - July 15, 2024: Xiao-I received a notification from NASDAQ indicating non-compliance with the minimum bid price requirement
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Following these announcements, Xiao-I's stock price experienced significant declines, with the ADS price falling to $0.67 per share on July 15, 2024
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.Related Stories
Legal Proceedings and Investor Rights
The class action lawsuits seek to recover damages on behalf of investors who purchased Xiao-I securities during the specified period. Law firms such as Bronstein, Gewirtz & Grossman, LLC, Law Offices of Howard G. Smith, and Glancy Prongay & Murray LLP are urging affected investors to join the case
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.Investors have until December 16, 2024, to file a motion to be appointed as lead plaintiff in the class action
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. The lawsuits allege violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.Implications for AI Industry and Investors
This case highlights the growing scrutiny of AI companies and the importance of accurate financial reporting and disclosure in the rapidly evolving AI sector. It also underscores the challenges faced by international companies in complying with both domestic and U.S. securities regulations.
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