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INOD.US
id: 1117
Innodata (INOD) False Statements About AI Business Case
D. New Jersey
Court2:24-cv-00971
Case number05/09/2019
Class period Start02/14/2024
Class period End04/22/2024
Lead Plaintiff motion deadline- $INOD stockholder filed a claim vs. Innodata for making false claims regarding its AI business.
- In February Wolfpack Research’s negative report caused $INOD to fall 30.4%, losing over $107M in shareholder value.
On February 15, 2024, Wolfpack Research published a report accusing Innodata (INOD) of misrepresenting the nature and extent of its business and operations. It claimed that Innodata:
- Did not have a viable AI technology;
- Its AI platform was a rudimentary software developed by just a handful of employees;
- It was not going to use AI for new Silicon Valley contracts;
- It was not effectively investing in R&D for AI;
- Had no basis for positive statements about its AI business and related financial results, growth, and prospects.
On this news, $INOD declined 30.4% and lost over $107 million of its market capitalization, seriously damaging shareholders.
Considering all the representations, investors have reasons to suspect Innodata of making false claims about its AI business, that led to investor losses when revealed.
The first affected investor already filed an initial claim vs. Innodata in D. New Jersey court.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/15/2024
Filing date
02/21/2024
Lead Plaintiff Deadline
04/22/2024
Judge
Jamel K. Semper