Investors Taking Action: Class Action Filed Against C3.ai for Alleged Securities Fraud

A Class Action Lawsuit Against C3.ai, Inc.

On October 21, 2025, Levi & Korsinsky, LLP announced a class action securities lawsuit against C3.ai, Inc. (NYSE: AI), aiming to recover losses for investors who suffered due to alleged securities fraud. This lawsuit pertains to a significant period between February 26, 2025, and August 8, 2025, during which critical information regarding the company's operational status was allegedly misrepresented to investors.

Importance of the Lawsuit

The filing of this class action is crucial for investors seeking compensation after a series of representations made by C3.ai that may have misled them about the company's performance and growth trajectory. According to the legal complaint, the company’s executives are accused of providing overly optimistic statements while simultaneously masking concerning details about the company’s health and operational management.

Allegations of Misrepresentation

The complaint points out that despite the positive outlook conveyed to investors, severe issues were at play within the company. Specifically, it claims that the health of C3.ai's CEO significantly affected the company's ability to close deals effectively. The management's ineffectiveness in addressing these challenges further exacerbated the company's struggles to meet growth and profit expectations.

A pivotal moment occurred on August 8, 2025, when C3.ai released dismal preliminary financial results for the first quarter of the fiscal year 2026, coupled with a lowered revenue guidance for the entire fiscal year. The company attributed this downturn in performance to both a management reorganization and the health concerns of its CEO, factors that had not been disclosed to investors previously.

Following this announcement, the market reacted sharply—C3.ai’s stock plummeted from $22.13 per share down to $16.47 by August 11, 2025, losing more than 25% of its value in a matter of days. This sharp decline not only reflects poor financial performance but also indicates a deeper mistrust among investors regarding the transparency of the company's disclosures.

What Investors Should Know

Investors who suffered losses during the mentioned period are encouraged to be proactive. The deadline to request the Court to appoint them as lead plaintiffs is October 21, 2025. It’s critical to note that participation in any recovery does not necessitate serving as a lead plaintiff, thus allowing more investors to seek compensation without incurring direct legal costs.

For those interested in pursuing their claims, Levi & Korsinsky emphasizes that class members may be entitled to compensation without any upfront payment or obligations associated with participation in the lawsuit.

Levi & Korsinsky’s Proven Track Record

With over 20 years of experience in handling complex securities litigation, Levi & Korsinsky has a strong track record of advocating for aggrieved shareholders. The firm has successfully secured hundreds of millions of dollars in compensation for investors and has established itself as a reputable firm in the competitive landscape of securities litigation. Their team comprises over 70 dedicated professionals committed to representing their clients’ interests vigorously.

The law firm has consistently been ranked among the top securities litigation firms in the United States, demonstrating its commitment to thoroughly investigating claims and helping investors reclaim their losses.

For additional inquiries or for those seeking to join the lawsuit, investors can reach out directly to Joseph E. Levi, Esq. via email or telephone as provided in their initial announcement. The call for action is clear; those affected by the C3.ai situation have an opportunity to advocate for their rights and seek justice.

For further details, investors are urged to follow the link for a detailed submission form regarding the class action lawsuit, which offers a straightforward process for involvement in the legal proceedings.