C3.ai Faces Class Action Suit Over Allegations of Misleading Statements

C3.ai Faces Legal Scrutiny in Class Action Lawsuit

A class action lawsuit has emerged against C3.ai, Inc., an artificial intelligence software company, citing allegations of misleading statements made to investors. The suit, which is making its way through the U.S. District Court for the Northern District of California, claims that senior leadership at C3.ai painted an inaccurately optimistic picture of the company's financial status and growth projections.

Filed on October 14, 2025, the intricacies of this case revolve around the complaint titled Liggett v. C3.ai, Inc. It alleges that the company's representatives failed to disclose key risks, notably those concerning the health of CEO Thomas M. Siebel, which the lawsuit asserts had a significant impact on the company’s ability to finalize deals and achieve its stated financial goals.

According to the plaintiffs, C3.ai's assertions about its growth potential and overall profitability were not only overly ambitious but also dangerously reliant on Siebel's well-being. Concerns regarding his health had been downplayed in public statements, misleading investors regarding the likelihood of achieving the ambitious growth expected by the market.

The lawsuit gained momentum after a dramatic fall in C3.ai's stock price, which plummeted by more than 25% following a disappointing quarterly financial announcement on August 8, 2025. The company released preliminary earnings that did not meet investor expectations and issued a lower revenue forecast for the entire fiscal year. The announcement cited issues related to a