#USA #New York #Levi & Korsinsky #Xiao-I Corporation #Securities Fraud

Class Action Lawsuit Against Xiao-I Corporation

Levi & Korsinsky, LLP has brought forth a significant class action securities lawsuit against Xiao-I Corporation (NASDAQ: AIXI), notifying investors of the opportunity to join this legal proceeding. The lawsuit is aimed at recovering losses incurred by shareholders who may have been affected by alleged fraudulent activities within the company. Investors have a deadline to join the action by December 16, 2024.

Background of the Case

The class action seeks to address concerns regarding securities fraud that reportedly took place between March 9, 2023, and July 12, 2024. The core of the complaint alleges that the company and its executives concealed crucial information about the firm’s financial condition and compliance with regulatory standards. This deception is said to have significantly impacted shareholder confidence and investment values.

Key Allegations

The lawsuit outlines several serious allegations against Xiao-I Corporation. Among these claims are:
1. Misrepresentation of Financial Health: The complaint asserts that company officials significantly downplayed risks associated with the firm’s operations tied to non-compliance issues involving Chinese shareholders. This non-compliance reportedly hindered Xiao-I's ability to utilize proceeds from financial offerings for intended purposes.
2. Violation of Accounting Principles: It has been claimed that Xiao-I's financial statements did not adhere to Generally Accepted Accounting Principles (GAAP), thereby misleading investors about their financial performance.
3. Overstatement of Remedial Efforts: The complaint alleges that the defendants exaggerated the efforts made to correct material weaknesses within the company’s financial controls, leading to misleading public statements.
4. Increased R&D Expenses: The financial burdens imposed on the company due to heightened research and development expenditures necessary to remain competitive in the AI sector were inadequately communicated to investors, leading to an inflated perception of the company's financial stability.
5. Overstated Competitiveness in AI Market: It is alleged that Xiao-I overstated its research and development capabilities and overall capacity to compete effectively in the growing AI market, further contributing to shareholders’ financial losses.
6. Risk of NASDAQ Compliance Violation: Finally, the lawsuit highlights concerns that due to these misleading representations, there exists a substantial risk of failing to meet NASDAQ's minimum bid price requirements, creating further financial angst for investors.

What Investors Should Do Next

Investors who believe they suffered financial losses during the specified period are encouraged to take action. They can join the lawsuit by contacting the law firm before the deadline. Levi & Korsinsky assures that participating in this class action will come at no cost to the investors, as the firm will not require any out-of-pocket expenses for class members.

To initiate the process, aggrieved investors can fill out a submission form linked in the firm’s announcement or contact Joseph E. Levi, Esq. directly via email or phone. This opportunity is crucial for shareholders seeking recompense for losses linked to potentially deceptive practices by the company.

Why Choose Levi & Korsinsky

Levi & Korsinsky has built a robust reputation over the past two decades, securing hundreds of millions of dollars for affected shareholders across numerous high-stakes cases. Their experienced legal team, comprising over 70 professionals, is well-versed in representing clients in complex securities litigation, which equips them to adequately address the challenges presented in this case.

If you believe you may have a claim against Xiao-I Corporation, don't miss your chance to be part of this important legal action. You can obtain more details and submit your information through the link provided by the firm or by reaching out directly for personalized assistance.