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Class Action Alert: iLearningEngines, Inc.

Robbins LLP, a law firm known for its commitment to shareholder rights, has issued an alert regarding a class action filed against iLearningEngines, Inc. (NASDAQ: AILE). The lawsuit, identified as case number 824-cv-02900, seeks to represent all individuals and entities who acquired shares of iLearningEngines between April 22, 2024, and August 28, 2024. This case emerges amidst serious allegations about the company's financial practices.

Background of the Case

The emergence of this class action is fueled by a report released by Hindenburg Research on August 29, 2024, which brought to light significant discrepancies in iLearningEngines' financial reporting. According to the report, the company, which presents itself as a leader in AI-driven learning automation, greatly exaggerated its revenues and expenses for the years 2022 and 2023. The report claims that virtually all reported financial figures were funneled through an undisclosed related party, referred to as a “Technology Partner.” This partner allegedly allowed iLearningEngines to generate fictitious revenue claims.

Hindenburg's findings indicated that iLearningEngines falsely reported approximately $138 million in revenue from the Indian market in 2022. However, it was later discovered that the actual revenue was merely $853,471—a staggering 99.4% discrepancy which dramatically impacts investor trust and company legitimacy. Following the revelations outlined in the report, iLearningEngines' shares plummeted, dropping $1.70 (53.3%) to close at $1.49 on the trading day after the report's release.

Legal Implications

In the class action complaint, plaintiffs assert that iLearningEngines misled investors by failing to disclose critical information: 1) the identity of their