Faruqi & Faruqi's Reminder for Xiao-I Investors Facing Class Action Deadline Approaches
Faruqi & Faruqi, LLP, a prominent national securities law firm, has reached out to investors of Xiao-I Corporation concerning a potential class action lawsuit. This reminder signals the approaching deadline for investors wishing to take the role of lead plaintiff in this significant case. Investors must act before December 16, 2024, to seek compensation for their losses.
James (Josh) Wilson, a partner at Faruqi & Faruqi, has emphasized the importance of contacting the firm if an investor has incurred losses exceeding $50,000 due to purchasing American Depository Shares (ADSs) during the company’s initial public offering (IPO) or subsequent periods.
Xiao-I went public on or around March 9, 2023, selling 5.7 million ADSs priced at $6.80 each. However, since the IPO, the shares have faced a significant decline, causing considerable financial strain on early investors. The firm’s investigation suggests that Xiao-I and its executives may have violated federal securities laws by providing misleading information regarding the company's financial standing and future prospects.
Recent disclosures suggested that Xiao-I underestimated the severity of risks linked to regulatory compliance and internal controls, primarily related to its Chinese shareholders. Furthermore, it was found that the company failed to adhere to Generally Accepted Accounting Principles (GAAP) while preparing its financial statements.
In August 2023, the price of Xiao-I’s ADSs plummeted after the company revealed critical financial data, including a substantial net loss of $18.8 million for the first half of 2023 compared to a small profit the year prior. The firm also reported a staggering 355% increase in operating expenses.
As news continued to emerge, the situation worsened. By April 30, 2024, the company disclosed annual revenues significantly below market expectations, coupled with a deeper loss of $27 million. These alarming financial reports have led to further devaluation of Xiao-I’s ADSs, triggering additional investor losses.
Of particular concern, Xiao-I has also faced a notification from NASDAQ indicating non-compliance with the minimum bid price requirement—a situation that poses an imminent risk to its listing. Investors should be aware that the legal landscape surrounding this case is evolving, and the firms conducting the class action have urged any potential class members with relevant information about Xiao-I’s operations to come forward.
The role of the lead plaintiff is crucial as this individual oversees the litigation process on behalf of the class. Even if a member of the class does not wish to take on this leadership role, they can still benefit from any potential recovery. As such, investors are encouraged to consider their options carefully—and act swiftly as the December deadline approaches.
Those interested in pursuing this legal recourse can contact Faruqi & Faruqi at their listed phone numbers for further discussions regarding their cases and eligibility for participation in the class action lawsuit. The firm, noted for its substantial history of recovering investor losses, stands ready to assist affected parties in navigating this complicated legal terrain.
For more information, potential class members can visit the law firm’s website at www.faruqilaw.com/AIXI or reach out directly for a confidential consultation about their rights and options in this pending litigation.
James (Josh) Wilson, a partner at Faruqi & Faruqi, has emphasized the importance of contacting the firm if an investor has incurred losses exceeding $50,000 due to purchasing American Depository Shares (ADSs) during the company’s initial public offering (IPO) or subsequent periods.
Xiao-I went public on or around March 9, 2023, selling 5.7 million ADSs priced at $6.80 each. However, since the IPO, the shares have faced a significant decline, causing considerable financial strain on early investors. The firm’s investigation suggests that Xiao-I and its executives may have violated federal securities laws by providing misleading information regarding the company's financial standing and future prospects.
Recent disclosures suggested that Xiao-I underestimated the severity of risks linked to regulatory compliance and internal controls, primarily related to its Chinese shareholders. Furthermore, it was found that the company failed to adhere to Generally Accepted Accounting Principles (GAAP) while preparing its financial statements.
In August 2023, the price of Xiao-I’s ADSs plummeted after the company revealed critical financial data, including a substantial net loss of $18.8 million for the first half of 2023 compared to a small profit the year prior. The firm also reported a staggering 355% increase in operating expenses.
As news continued to emerge, the situation worsened. By April 30, 2024, the company disclosed annual revenues significantly below market expectations, coupled with a deeper loss of $27 million. These alarming financial reports have led to further devaluation of Xiao-I’s ADSs, triggering additional investor losses.
Of particular concern, Xiao-I has also faced a notification from NASDAQ indicating non-compliance with the minimum bid price requirement—a situation that poses an imminent risk to its listing. Investors should be aware that the legal landscape surrounding this case is evolving, and the firms conducting the class action have urged any potential class members with relevant information about Xiao-I’s operations to come forward.
The role of the lead plaintiff is crucial as this individual oversees the litigation process on behalf of the class. Even if a member of the class does not wish to take on this leadership role, they can still benefit from any potential recovery. As such, investors are encouraged to consider their options carefully—and act swiftly as the December deadline approaches.
Those interested in pursuing this legal recourse can contact Faruqi & Faruqi at their listed phone numbers for further discussions regarding their cases and eligibility for participation in the class action lawsuit. The firm, noted for its substantial history of recovering investor losses, stands ready to assist affected parties in navigating this complicated legal terrain.
For more information, potential class members can visit the law firm’s website at www.faruqilaw.com/AIXI or reach out directly for a confidential consultation about their rights and options in this pending litigation.
Topics Financial Services & Investing）
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