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AIXI.US
id: 1371
Xiao-I Corporation (AIXI) IPO Misrepresentation Case
The defendant has requested the court to dismiss the case.
S.D. New York
Court1:24-cv-07837
Case number03/09/2023
Class period Start07/12/2024
Class period End12/16/2024
Lead Plaintiff motion deadline- $AIXI stockholders filed a claim against Xiao-I Corporation for misleading them about its AI business, financial management, and risks tied to its Chinese shareholders.
- After a series of negative financial disclosures, $AIXI dropped by over 50% from its IPO price.
- $AIXI investors can join this case to be notified about potential recovery.
Case Details:
In March 2023, Xiao-I Corporation conducted its IPO, offering 5.7 million shares at $6.80 per share.
In July 2023, it was revealed that Xiao-I faced compliance issues with Chinese shareholders under Circular 37, which stopped the company from using IPO funds as planned.
On September 25, 2023, Xiao-I's unaudited financial results revealed that the company had overstated its AI capabilities while hiding the high R&D costs.
Additionally, In July 2024, it was revealed that Xiao-I needed to have adhered to proper accounting standards, specifically failing to comply with U.S. GAAP.
These revelations led to $AIXI plummeting by over 50%, raising concerns that the company might not meet NASDAQ’s minimum price requirements.
Based on these events, $AIXI stockholders filed a claim against Xiao-I, accusing the company of the following:
- That the company hid risks tied to Chinese shareholders’ regulatory compliance.
- That the company misled investors about its AI capabilities and financial health.
- The company downplayed the financial strain caused by high R&D costs.
Investors believe Xiao-I misled them by concealing key risks, exaggerating its AI capabilities, and understating the impact of its rising R&D expenses.
Case Type
US Securities Class Action
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
07/15/2024
Filing date
10/15/2024
Lead Plaintiff Deadline
12/16/2024