#USA #New York #The Gross Law Firm #Xiao-I Corporation #NASDAQ AIXI

Class Action Suit Against AIXI: Important Notice for Shareholders

On December 16, 2024, shareholders of Xiao-I Corporation (NASDAQ: AIXI) are urged to take action regarding a class action lawsuit initiated by The Gross Law Firm. If you acquired shares between March 9, 2023, and July 12, 2024, you may qualify to join this legal proceeding.

Background of the Class Action

The Gross Law Firm has issued a public notice encouraging affected shareholders to reach out for information about potential lead plaintiff appointments. However, it is important to note that acting as a lead plaintiff is not a requirement for participating in any recovery from the lawsuit. This providing a unique opportunity for investors to reclaim some of their losses without the pressure of leading the charge.

Allegations Against Xiao-I Corporation

The allegations in this case are serious and multifaceted. Shareholders believe that the company's leadership made misleading statements and failed to disclose vital information that could affect the stock's value:
1. Downplaying Risks: It is alleged that Xiao-I's management minimized the risks posed by non-compliance issues regarding foreign investment, specifically tied to some of its Chinese shareholders.
2. Accounting Violations: The complaint indicates that the company did not adhere to Generally Accepted Accounting Principles (GAAP) in preparing its financial statements.
3. Overstating Compliance: Further claims suggest a deception regarding efforts to rectify material weaknesses in financial controls.
4. Increased Expenses: The lawsuit claims that Xiao-I was obligated to incur substantial R&D expenses to stay competitive in the AI sector, which the company allegedly downplayed.
5. Misrepresentation of Capabilities: Xiao-I purportedly exaggerated its AI prowess, available resources, and competitive position in the market.
6. NASDAQ Compliance Risk: It is posited that due to these undisclosed issues, there was a heightened risk that the company might fail to meet the NASDAQ's minimum bid price requirements. This culminated in the belief that many statements made by the company during the class period were materially false or misleading.

Next Steps for Shareholders

Shareholders are advised to register their information through the provided link on The Gross Law Firm’s website for status updates throughout the litigation process. Participating in this class action holds no fees or obligations for shareholders. Registration must be completed by December 16, 2024, to be eligible for recovery.

Why Choose The Gross Law Firm?

The Gross Law Firm is highly regarded as a national leader in class action litigation. They are dedicated to advocating for investors who have faced losses due to deceitful business practices and fraudulent activities. Their commitment to holding companies accountable for responsible governance serves to protect the rights of shareholders across the nation.

If you are a shareholder of Xiao-I Corporation, don’t hesitate to contact The Gross Law Firm at their New York office or reach them via their website. Remember, your right to recovery may depend on your immediate action, so take the necessary steps today to ensure you are represented and informed as this case unfolds.

Contact Information

The Gross Law Firm
15 West 38th Street, 12th Floor
New York, NY 10018
Email: [email protected]
Phone: (646) 453-8903

Be proactive and safeguard your investment rights!