#United States #New York #Class Action #Xiao-I Corporation #AIXI

Important Update on Xiao-I Corporation Class Action Lawsuit

Levi & Korsinsky, LLP has formally notified investors of Xiao-I Corporation (NASDAQ: AIXI) regarding a class action lawsuit, which aims to address alleged securities fraud that occurred between March 9, 2023, and July 12, 2024. This lawsuit represents a significant development for investors impacted by the company’s actions during this time frame.

Background of the Case

The class action lawsuit arises from claims that Xiao-I Corporation misrepresented and concealed various operational and financial issues. Allegations include downplaying the serious risks associated with certain Chinese shareholders’ non-compliance with regulations, which subsequently affected the company's financial practices. Moreover, the complaint stresses that Xiao-I failed to adhere to Generally Accepted Accounting Principles (GAAP) in its financial statements, raising concerns about the integrity of its reported information.

Allegations of False Statements

Several key allegations are central to this lawsuit:
1. Risk Disclosure: The company allegedly minimized the true extent of risks linked to non-compliance by its Chinese shareholders, which hindered the company's capacity to utilize offering proceeds effectively.
2. Financial Reporting Compliance: The lawsuit contends that Xiao-I did not comply with GAAP, compromising its financial reporting.
3. Material Weaknesses: There were claims that the company overstated its efforts to resolve critical weaknesses in its financial controls.
4. Research and Development (R&D) Expenses: The challenges associated with competing in the AI industry led to untenable R&D expenses, further constraining the company's financial stability.
5. Overstated AI Capabilities: The corporation reportedly overstated its AI capabilities and R&D resources, ultimately questioning its competitive stance in the AI market.

What's at Stake for Investors

For investors who experienced losses during the specified period, it is crucial to act promptly. The deadline to request the Court to appoint an individual as lead plaintiff is December 16, 2024. Notably, participating in this class action does not require investors to serve as lead plaintiffs, allowing broader participation.

No Financial Burden for Participants

Participating in this class action comes with no costs or obligations for class members. Investors are encouraged to explore their eligibility for compensation without incurring any out-of-pocket expenses. The team at Levi & Korsinsky has a proven track record in successfully securing restitution for shareholders in similar situations.

Why Levi & Korsinsky?

With over two decades of experience, Levi & Korsinsky has built a formidable reputation in handling complex securities litigation. The firm has secured hundreds of millions of dollars for investors and ranked consistently in ISS Securities Class Action Services' Top 50 Report.

Next Steps for Affected Investors

Affected investors are urged to review their positions and consider their options. Those who believe they qualify can initiate the process by contacting Levi & Korsinsky or visiting the firm's detailed page on the matter for further information.

For direct assistance, investors can reach out to Joseph E. Levi, Esq., or Ed Korsinsky, Esq., at Levi & Korsinsky, LLP based in New York City. They can be contacted via email at [email protected] or by phone at (212) 363-7500.

Conclusion

This lawsuit is an essential reminder for investors in Xiao-I Corporation to stay informed and take action. Allegations of securities fraud can have profound implications, making it critical for impacted shareholders to be proactive in seeking justice and potential restitution.