NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces that a shareholder filed a class action on behalf of purchasers of Xiao-I Corporation (NASDAQ: AIXI): (i) American depository shares (“ADSs”) pursuant and/or traceable to the Offering Documents issued in connection with the Company’s initial public offering conducted on or about March 9, 2023 (the “IPO” or “Offering”); and/or (ii) securities between March 9, 2023 and July 12, 2024. Xiao-I describes itself as a “global artificial intelligence (“AI”) company.”
For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653.
The Allegations: Rosen Law Firm is Investigating the Allegations that Xiao-I Corporation (NASDAQ: AIXI) Misled Investors Regarding its Business Operations.
According to the lawsuit, the Offering Documents and defendants made false and/or misleading statements and/or failed to disclose that: (1) defendants had downplayed the true scope and severity of risks that Xiao-I faced due to certain of its Chinese shareholders’ non-compliance with Circular 37 Registration, which imposes certain registration requirements on Chinese residents that contribute domestic assets or interests to offshore companies, including Xiao-I’s inability to use Offering proceeds for intended business purposes; (2) Xiao-I failed to comply with the U.S.’s Generally Accepted Accounting Principles (“GAAP”) in preparing its financial statements; (3) defendants overstated Xiao-I’s efforts to remediate material weaknesses in Xiao-I’s financial controls; (4) Xiao-I was forced to incur significant research and development (“R&D”) expenses to effectively compete in the AI industry; (5) Xiao-I downplayed the significant negative impact that such expenses would have on Xiao-I’s business and financial results; (6) accordingly, Xiao-I overstated its AI capabilities, R&D resources, and overall ability to compete in the AI market; (7) as a result of all the foregoing, there was a substantial likelihood that Xiao-I would fail to comply with NASDAQ’s listing requirements, including, inter alia, that its ADSs maintain a minimum closing bid price of $1.00 per share, (the “Minimum Bid Price Requirement”); and (8) as a result, the Offering Documents and defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein. When the true details entered the market, the lawsuit claims that investors suffered damages.
What Now: You may be eligible to participate in the class action against Xiao-I Corporation. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by December 16, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Rosen Law: Some law firms issuing releases about this matter do not actually litigate securities class actions; Rosen Law Firm does. A recognized leader in shareholder rights litigation, the attorneys and staff of Rosen Law Firm have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing. Since our inception, we have obtained over $1 billion for shareholders.
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