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INOD.US
id: 1117

Innodata (INOD) False Statements About AI Business Case

D. New Jersey
Court
2:24-cv-00971
Case number
09 May 2019
Class period Start
14 Feb 2024
Class period End
22 Apr 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.
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
15 February 2024
Filing date
21 February 2024
Lead Plaintiff Deadline
22 April 2024
Judge
Jamel K. Semper
Collecting participants…

Innodata Inc

Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digi...

    Ticker
    INOD.US
    ISIN
    US4576422053
    CIK
    903651
    Sector
    Technology
    Industry
    Information Technology Services
    Country
    USA
    Address
    55 Challenger Road, Ridgefield Park, NJ, United States, 07660