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AIXI.US
id: 1371
Xiao-I Corporation (AIXI) IPO Misrepresentation 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 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