C3.ai (AI) Price Manipulation Case

The defendant has requested the court to dismiss the case.

N.D. Illinois

Court

23-CV-02175

Case number

04/04/2023

Class period Start

04/06/2023

Class period End

06/06/2023

Lead Plaintiff motion deadline

Short-Seller Kerrisdale & Adrangi accused C3.ai of fraud.
$AI dropped 25%+ and lost ~$1B of its MCap, injuring investors.
Investors suspect the Activist manipulated the $AI price by disseminating false accusations.

On April 4, 2023, the letter authored by Kerrisdale Capital Management and Adrangi, an “activist” short-seller of shares of stock in C3.ai, Inc., accused C3.ai., Inc. of, among other things, knowingly creating financial statements that contain “deceitful accounting,” “to fool market participants by painting a false portrait of the company’s profit and loss,” and “trying to cover up a failing business.”

The April 4, 2023 Letter also accused Deloitte & Touche LLP, one of the nation’s leading auditing, accounting, and consulting firms, and C3.ai, Inc.’s auditor of, among other things, “rubber stamping fraudulent accounting” and directed Deloitte & Touche LLP “to come clean in its upcoming audit or resign.”

On this news, the $AI price dropped over 25% and lost around $1B of its market capitalization, seriously injuring investors.

Investors suspect that Kerrisdale and Adrangi Intended to reach a negative $AI price effect as a result of the false accusations set forth in the April 4, 2023 Letter.

Case Status

Motion to dismiss

Alleged Offence

Price manipulation

Suspected Party

Influencer,

Research Entity,

Hedge Fund

Security Type

Stocks

Trade Direction

Long

Shock Event Date

04/04/2023

Filing date

04/06/2023

Lead Plaintiff Deadline

06/06/2023