Sign In
Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
AIXI.US
id: 1371

Xiao-I Corporation (AIXI) IPO Misrepresentation Case

S.D. New York
Court
1:24-cv-07837
Case number
03/09/2023
Class period Start
07/12/2024
Class period End
12/16/2024
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 Status
Lead Plaintiff Appointed
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
Collecting participants…

XIAO-I Corporation American Depositary Shares

Xiao-I Corporation, through its subsidiary, Shanghai Xiao-i Robot Technology Co., Ltd., provides software services in the People's Republic of China. It offers conversational AI platform that uses ...

    Ticker
    AIXI.US
    CIK
    1935172
    Sector
    Technology
    Industry
    Software - Application
    Country
    USA
    Address
    Building 2, Shanghai, China, 201101