Investors in Xiao-I Corporation Have Chance to Lead Important Securities Class Action Lawsuit

Opportunity for Investors in Xiao-I Corporation

The recent announcement from the Rosen Law Firm highlights a significant opportunity for investors who purchased American depository shares (ADSs) of Xiao-I Corporation (NASDAQ: AIXI) during its initial public offering (IPO) on March 9, 2023. The law firm, known globally for advocating investor rights, has put forth a call to action for individuals who acquired Xiao-I securities from March 9, 2023, to July 12, 2024, emphasizing the upcoming deadline of December 16, 2024, for potential lead plaintiffs.

Understanding the Class Action

For those who invested in Xiao-I ADSs, you might be entitled to compensation at no upfront costs, thanks to a contingency fee arrangement. This class action aims to hold Xiao-I accountable due to allegations of misleading statements and omissions in its Offering Documents and public communications. Rosen Law Firm provides a pathway for these investors to recover damages and contribute to the legal process.

If you are interested in joining the class action, you can take immediate action by visiting the Rosen Law Firm's website or reaching out directly via phone. The firm emphasizes the importance of acting swiftly, especially considering the deadline for restoring your rights as an investor.

Key Allegations Against Xiao-I

The core of the lawsuit involves claims that Xiao-I Corporation, through its IPO and subsequent communications, made several materially false or misleading statements. These allegations suggest that:
1. Undisclosed Risks: The company downplayed significant risks associated with certain Chinese shareholders' non-compliance with Circular 37 Registration. This has raised questions about the financial integrity and intended uses of the IPO proceeds.
2. Financial Reporting Issues: There were concerns that Xiao-I failed to comply with Generally Accepted Accounting Principles (GAAP), casting doubt on the reliability of its financial disclosures and the overall financial health of the organization.
3. Overlooked Financial Control Issues: The extent of the material weaknesses in its financial controls was not fully disclosed, which potentially misled investors about the company's operational stability.
4. Research and Development Expenses: The firm is accused of understating the significant research and development expenses essential for maintaining competition in the rapidly evolving AI industry. These costs have been linked to negative impacts on the company's financial performance.
5. Compliance with NASDAQ Requirements: Warnings have emerged regarding Xiao-I’s ability to meet NASDAQ listing requirements, particularly concerning the minimum bid price for shares, which may lead to serious repercussions for investors.

Steps for Investors

To participate in the class action, investors should visit rosenlegal.com for further details. It's important to remember that no class has yet been certified, meaning that engagement with legal counsel isn't mandatory unless an investor chooses to take that path. Those who prefer to remain absent participants can do so without any immediate obligations.

Choosing the right legal representation is crucial. The Rosen Law Firm encourages potential participants to consider firms with proven track records in securities litigation, as many firms inundating the market lack significant experience or the capacity to litigate these complex cases effectively.

The Rosen Law Firm’s Expertise

Recognized for its impressive history of settlements and contributions to investor rights, the Rosen Law Firm stands out in the field of securities litigation. The firm has achieved notable outcomes, including large settlements against Chinese corporations and has consistently ranked high in settlements' volume and effectiveness since 2013. Founding partner Laurence Rosen's acknowledgment as a leader in this domain strengthens the firm's credibility.

If you are a Xiao-I Corporation investor, now is the time to consider your options. Potential entitlement to recover damages awaits those who act. For ongoing updates and guidance, you can also follow the Rosen Law Firm on their social media platforms including LinkedIn, Twitter, and Facebook.

Remember, being informed and engaged could serve as your best defense in navigating the complexities of securities litigation.