OAKLAND, Calif.--(BUSINESS WIRE)--Gibbs Law Group announces that a class action lawsuit has been filed on behalf of investors who purchased or acquired shares of iLearningEngines, Inc. (NASDAQ: AILE) between April 22, 2024, and August 28, 2024. Previously, iLearning stock plunged over 54% in intraday trading on Thursday, August 29, 2024, following a Hindenburg report alleging that “the majority of iLearningEngines’ revenue doesn’t exist” and that its relationship with an undisclosed related party referred to as “Technology Partner” is “a conduit for falsifying its financials.”
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What is the iLearningEngines, Inc. Lawsuit About?
On August 29, 2024, Hindenburg Research published a report claiming that “nearly all” of iLearningEngines’ revenue and expenses “seem to be run through an undisclosed related party, an unnamed ‘Technology Partner,’” and “the majority of iLearningEngines’ revenue doesn’t exist.” The Hindenburg report states that iLearningEngines also has “no obvious industry presence, doesn’t name key customers or partners and does not appear to do the volume of business it claims.” For example, the company claims its Indian market has an annual revenue run rate of $216 million, but the amounts reported by its sole Indian subsidiary are actually around 99.4% less than what iLearningEngines purports, according to the report.
The iLearning Engines lawsuit alleges that throughout the class period, iLearning made false or misleading statements to investors and failed to disclose material adverse facts about the company’s business, operations, and prospects.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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