Faruqi & Faruqi, LLP Investigates Investor Claims Against Xiao-I Corporation in Securities Class Action
Faruqi & Faruqi, LLP, a prominent name in securities law, has initiated an investigation concerning Xiao-I Corporation, focusing on claims from investors who incurred substantial losses, particularly those amounting to more than $50,000. This comes in the wake of significant financial turmoil faced by Xiao-I following its initial public offering (IPO) in early 2023.
On March 8, 2023, Xiao-I made its debut on the NASDAQ under the ticker symbol AIXI, offering approximately 5.7 million American depositary shares (ADS) priced at $6.80 each. Unfortunately, this IPO did not mark the beginning of a prosperous era for the company. Subsequent disclosures have raised serious doubts regarding Xiao-I’s compliance with federal securities regulations, leading to a dramatic decline in the value of its shares.
The law firm highlights multiple grievances against Xiao-I, indicating that the company and its executives may have misled investors through false statements and omissions. Allegations include:
1. False Disclosures: Claims that the company diverted attention from the severity of financial risks associated with its operations, particularly linked to compliance issues with Circular 37 Registration. This raised concerns regarding the intended use of funds raised during the IPO.
2. Financial Reporting Irregularities: It's claimed that Xiao-I failed to adhere to Generally Accepted Accounting Principles (GAAP) while preparing financial statements, which in turn affected investors’ understanding of the company’s financial health.
3. Exaggerated R&D Claims: The firm contends that Xiao-I overstated its capabilities in artificial intelligence (AI) and its research and development (R&D) investments, which could potentially mislead investors about the organization's competitive stance in the market.
Investors experienced immediate repercussions when on August 10, 2023, Xiao-I revised its annual financial report, indicating potential barriers to fund transfers, which led stock prices to drop significantly. The company's stock further suffered when, on July 15, 2024, it revealed receipt of a deficiency letter from NASDAQ due to non-compliance with minimum bid price requirements, further exacerbating investor woes.
As the investigation unfolds, Faruqi & Faruqi encourages any investors who suffered losses due to these situations to actively engage in the legal process. The firm emphasizes that being a part of the class action could allow individuals to seek restitution and hold Xiao-I accountable for its alleged misdeeds.
In light of these developments, potential lead plaintiffs are being sought, and the firm is prepared to direct these legal inquiries effectively. Those who believe that their rights have been violated are urged to contact Josh Wilson at Faruqi & Faruqi to discuss their options.
This investigation serves as a vital reminder of the importance of transparency and accountability in the corporate world, especially for entities navigating complex regulatory environments like that of Xiao-I Corporation. The firm is committed to advocating for investors who may have been misled and ensuring justice is served. For more information on how to participate in this class action and share potential insights, individuals can visit Faruqi & Faruqi's website or reach out directly to the legal team, which welcomes insights from various stakeholders including whistleblowers and former employees who may have pertinent information regarding Xiao-I’s operations and financial practices.
On March 8, 2023, Xiao-I made its debut on the NASDAQ under the ticker symbol AIXI, offering approximately 5.7 million American depositary shares (ADS) priced at $6.80 each. Unfortunately, this IPO did not mark the beginning of a prosperous era for the company. Subsequent disclosures have raised serious doubts regarding Xiao-I’s compliance with federal securities regulations, leading to a dramatic decline in the value of its shares.
The law firm highlights multiple grievances against Xiao-I, indicating that the company and its executives may have misled investors through false statements and omissions. Allegations include:
1. False Disclosures: Claims that the company diverted attention from the severity of financial risks associated with its operations, particularly linked to compliance issues with Circular 37 Registration. This raised concerns regarding the intended use of funds raised during the IPO.
2. Financial Reporting Irregularities: It's claimed that Xiao-I failed to adhere to Generally Accepted Accounting Principles (GAAP) while preparing financial statements, which in turn affected investors’ understanding of the company’s financial health.
3. Exaggerated R&D Claims: The firm contends that Xiao-I overstated its capabilities in artificial intelligence (AI) and its research and development (R&D) investments, which could potentially mislead investors about the organization's competitive stance in the market.
Investors experienced immediate repercussions when on August 10, 2023, Xiao-I revised its annual financial report, indicating potential barriers to fund transfers, which led stock prices to drop significantly. The company's stock further suffered when, on July 15, 2024, it revealed receipt of a deficiency letter from NASDAQ due to non-compliance with minimum bid price requirements, further exacerbating investor woes.
As the investigation unfolds, Faruqi & Faruqi encourages any investors who suffered losses due to these situations to actively engage in the legal process. The firm emphasizes that being a part of the class action could allow individuals to seek restitution and hold Xiao-I accountable for its alleged misdeeds.
In light of these developments, potential lead plaintiffs are being sought, and the firm is prepared to direct these legal inquiries effectively. Those who believe that their rights have been violated are urged to contact Josh Wilson at Faruqi & Faruqi to discuss their options.
This investigation serves as a vital reminder of the importance of transparency and accountability in the corporate world, especially for entities navigating complex regulatory environments like that of Xiao-I Corporation. The firm is committed to advocating for investors who may have been misled and ensuring justice is served. For more information on how to participate in this class action and share potential insights, individuals can visit Faruqi & Faruqi's website or reach out directly to the legal team, which welcomes insights from various stakeholders including whistleblowers and former employees who may have pertinent information regarding Xiao-I’s operations and financial practices.
Topics Financial Services & Investing）
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