#USA #New York #Levi & Korsinsky #Xiao-I Corporation #AIXI

Xiao-I Corporation Faces Class Action Lawsuit

In recent news, Xiao-I Corporation, listed on NASDAQ under the ticker AIXI, is under serious scrutiny as it faces a class action lawsuit filed by Levi & Korsinsky, LLP. This legal action is aimed at investors who believe they were harmed by the company's alleged engagement in securities fraud. The period in question spans from March 9, 2023 to July 12, 2024, a timeframe where substantial claims suggest that the corporation misled its investors regarding critical financial and operational challenges.

Understanding the Lawsuit

The lawsuit claims that during the specified period, Xiao-I Corporation made numerous false representations and concealed material facts regarding its business practices. Specifically, the allegations indicate that the company downplayed the risks stemming from non-compliance with foreign investment regulations tied to certain Chinese shareholders. Such non-compliance supposedly hindered the company’s ability to utilize the proceeds from its offerings effectively.

Moreover, the complaints assert that Xiao-I did not adhere to Generally Accepted Accounting Principles (GAAP) in its financial reporting, which is essential for maintaining transparency with investors. This lack of adherence raises concerns about the accuracy and reliability of the financial statements provided by the company.

Another severe accusation involves the company overstating the effectiveness of its efforts to address material weaknesses in its financial controls. There's also a claim that Xiao-I struggled to maintain its competitive edge in the Artificial Intelligence (AI) industry due to mismanagement of research and development (R&D) expenses, which significantly impacted its operational performance.

Implications for Investors

Investors who suffered losses due to the situation are encouraged to act promptly. They have until December 16, 2024, to apply for the role of lead plaintiff in this class action suit. It's essential to note that even if an investor does not serve as the lead plaintiff, they may still be entitled to some form of compensation if the lawsuit concludes in favor of the class members.

What Should You Do?

If you believe you are among the affected investors, there are several actions you can take:

1. Contact Levi & Korsinsky, LLP: Investors are encouraged to reach out via email or telephone. The firm offers a free consultation to discuss details and the implications of the suit.
- Email: [email protected]
- Phone: (212) 363-7500

2. Gather Documentation: Collect any necessary documentation that could support your case; this may include purchase records, communications from the company, or other relevant information.

3. Stay Informed: Keep up-to-date with the progress of the lawsuit and be aware of any court decisions or announcements that may affect your standing.

Why Choose Levi & Korsinsky?

With over two decades of experience in handling complex securities litigation, Levi & Korsinsky has established a robust track record of securing significant compensation for shareholders. The firm has been recognized as one of the top securities litigation firms in the United States, consistently ranked in the Top 50 Report by ISS Securities Class Action Services.

As this legal battle unfolds, those connected with Xiao-I Corporation should be vigilant about their rights and take necessary actions to protect their investments. Affected investors must consider seeking legal counsel to navigate their options efficiently.

For additional updates and information, you can follow developments through legal news channels and directly from Levi & Korsinsky, LLP. Together, the actions will aim to seek accountability and justice for investors affected by what is being described as a significant breach of trust by Xiao-I Corporation.