Levi & Korsinsky Initiates Securities Class Action for Xiao-I Corporation Investors
On December 3, 2024, Levi & Korsinsky, LLP formally notified shareholders of Xiao-I Corporation (NASDAQ: AIXI) about a class action lawsuit addressing alleged securities fraud that impacts investors dating back to March 9, 2023, extending to July 12, 2024. This class action lawsuit aims to recuperate financial losses incurred by these investors due to misleading information propagated by the company's representatives.
The lawsuit highlights several critical infractions committed by Xiao-I Corporation, shedding light on statements made by the company's management during the class period. Key allegations include that the management failed to appropriately disclose the severity of risks stemming from compliance issues involving their Chinese shareholders, which in turn hampered the company's ability to allocate proceeds from their public offerings for intended business operations. Additionally, the complaint points out that the financial statements released by Xiao-I were not in alignment with Generally Accepted Accounting Principles (GAAP), and that there were significant deficiencies in the company’s financial controls.
Furthermore, it accuses the executives of overstating efforts to rectify significant weaknesses in financial management and neglecting to account for the considerable research and development (R&D) costs incurred as Xiao-I engages in the competitive Artificial Intelligence (AI) sector. The concealment of these extensive expenses misled investors regarding the company's true financial health and competitive standing within the AI market.
As a result of these purported misrepresentations, there is an implied risk that Xiao-I could potentially fail to comply with NASDAQ's Minimum Bid Price Requirement, which is crucial for its continued listing on the exchange. Consequently, the public statements made by the defendants during the affected time frame are said to be materially false and misleading, contributing to a fragile trust among investors.
For Xiao-I shareholders who have suffered losses during this timeframe, it is critical to respond promptly, as the deadline to request appointment as lead plaintiff is December 16, 2024. Participation in the class action provides a chance for compensation for eligible shareholders without incurring any upfront costs or fees. Levi & Korsinsky emphasizes that, throughout their 20 years of experience, they have successfully recovered significant amounts for investors through formidable legal representation in complex securities litigation.
Interested investors can reach out via email to Joseph E. Levi, Esq. at [email protected] or by phone at (212) 363-7500 for further discussion about the lawsuit and its implications. Levi & Korsinsky is recognized as one of the leading firms in this field, consistently topping the charts for securities class actions, thus offering potential plaintiffs a compelling case for participation in the lawsuit against Xiao-I Corporation.