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iLearningEngines (AILE) Faces Investor Class Action - Hagens Berman
Globe Newswire 7-Nov-2024 4:23 PM
SAN FRANCISCO, Nov. 07, 2024 (GLOBE NEWSWIRE) -- A scathing report from a renowned activist short seller has cast doubt on the financial health and business model of iLearningEngines (NASDAQ:AILE) and given rise to an investor class action.
Hagens Berman urges iLearningEngines investors who suffered substantial losses to submit your losses now.
Known for its track record of exposing corporate malfeasance, Hindenburg Research accuses the AI-powered learning automation company of fabricating revenue and engaging in questionable accounting practices. Key allegations in the report include:
Related Party Transactions: The short seller claims that a significant portion of iLearningEngines' revenue and expenses is routed through an undisclosed related party, a UAE-based entity named Experion Technologies.
Misleading SEC Filings: The company allegedly lied to the SEC about its relationship with Experion, denying any affiliation despite evidence suggesting otherwise.
Inflated Revenue Claims: The report questions the veracity of iLearningEngines' revenue figures, particularly in its Indian market, where the actual revenue generated by its sole subsidiary is significantly lower than the company's claims.
Weak Auditing: The company's auditor, Marcum LLP, has a history of audit quality control issues and has been fined by the PCAOB and the SEC.
Following the Hindenburg report, iLearningEngines' stock price reportedly plummeted by over 50%.
Hindenburg Report Triggers Investor Class Action
In the wake of the explosive report and sharp stock price decline, iLearningEngines is now facing a class-action lawsuit. The lawsuit, filed on behalf of investors who purchased iLearningEngines stock between April 22 and August 28, 2024, alleges that the company engaged in fraudulent practices.
The lawsuit echoes Hindenburg's allegations, contending that the company's positive public statements about its business operations and future prospects were materially misleading due iLearningEngines' alleged scheme of fabricating revenue and expenses by routing them through an undisclosed "Technology Partner."
The lawsuit seeks to recover losses for investors who were allegedly deceived by iLearningEngines' fraudulent conduct.
Shareholder Rights Firm Launches Investigation
Prominent shareholder rights firm Hagens Berman has launched an investigation into the matter.
"Investors who relied on iLearningEngines' alleged misleading statements and omissions may have suffered significant financial losses," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in iLearningEngines and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the iLearningEngines case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding iLearningEngines should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AILE@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
