#United States #New York #Class Action #Xiao-I Corporation #Securities Fraud

Class Action Lawsuit Filed Against Xiao-I Corporation

On December 13, 2024, law firm Levi & Korsinsky, LLP announced that a class action lawsuit has been initiated against Xiao-I Corporation (NASDAQ: AIXI). This legal proceeding aims to seek recompense for investors who experienced financial losses attributed to alleged securities fraud occurring between March 9, 2023, and July 12, 2024.

The Alleged Fraud

According to the complaint, defendants in the case purportedly misrepresented and omitted critical facts concerning the company’s operations and financial position. The allegations highlight several key issues:

1. Downplayed Risks: It is alleged that the risks associated with specific Chinese shareholders' non-compliance with international investment regulations were significantly underestimated, affecting the company's ability to utilize funding effectively for business operations.
2. Accounting Misconduct: The lawsuit claims that the company did not adhere to Generally Accepted Accounting Principles (GAAP) when preparing its financial statements.
3. Overstated Resilience: The evidence suggests defendants exaggerated their efforts to correct serious weaknesses in financial controls, misleading investors about the company's management capabilities.
4. Heavy R&D Expenses: Xiao-I reportedly faced substantial research and development expenses necessary to remain competitive in the rapidly evolving AI industry. The lawsuit claims the company underestimated the detrimental impact these expenses would have on its financial health.
5. Exaggerated AI Capabilities: Allegations include the overstatement of Xiao-I's AI technologies, resources, and ability to compete effectively in the AI market.
6. NASDAQ Compliance Risk: Due to these factors, there was a concerning possibility that Xiao-I might fail to meet NASDAQ's minimum bid price requirement, further imperiling investor interests.

What Affected Investors Should Know

Investors who suffered losses during the defined period now have until December 16, 2024, to seek appointment as the lead plaintiff in this class action. Importantly, joining the lawsuit does not require individuals to step into a lead role, and participation will involve no financial obligation or upfront costs.

Levi & Korsinsky, known for its successful track record in securities litigation, has been instrumental in securing substantial settlements for shareholders over the years. The firm emphasizes that investors can expect no out-of-pocket expenses if they are determined to be eligible class members.

How to Get Involved

Those interested in participating in the class action or seeking more information can reach out to Joseph E. Levi, Esq., at Levi & Korsinsky by email at [email protected], or by phone at (212) 363-7500.

For more details, prospective class members can also visit their official website and complete a submission form. By acting quickly, affected investors can ensure they keep their rights intact and possibly recover some of their losses as this litigation unfolds.

Conclusion

As the case progresses, it will be crucial for impacted investors to stay informed and involved. The resolution of this class action could set noteworthy precedents in securities law, especially within the tech sector where transparency and compliance are increasingly scrutinized.