SAN FRANCISCO, Dec. 04, 2024 (GLOBE NEWSWIRE) -- iLearningEngines (NASDAQ: AILE), an AI-powered learning automation company, has been embroiled in a series of troubling developments that have sent its stock price plummeting and caused its investors to allege claims of securities fraud.
Hagens Berman urges iLearningEngines investors who suffered substantial losses to submit your losses now.
iLearningEngines Replaces CFO and Warns of Financial Restatements Amid Investigation
On November 18, 2024, the company announced a series of significant issues, including the postponement of its Q3 2024 financial results due to an ongoing investigation into a short seller report, the suspension of its CFO, the withdrawal of its auditor Marcum’s prior opinions, the warning that its financial statements from 2021-2024 should no longer be relied upon and a subpoena from the Securities and Exchange Commission (SEC). In response, the price of iLearningEngines crashed over 30% that day.
These disclosures came on the heels of a scathing report released on August 29 by Hindenburg Research, a prominent short seller, which accused the company of fabricating revenue and engaging in questionable accounting practices.
Hindenburg’s report alleged that iLearningEngines had inflated its revenue figures by routing a significant portion of its business through an undisclosed related party, Experion Technologies. The report also raised concerns about the company's relationship with Experion and its transparency regarding its financial dealings.
Following the release of the Hindenburg report, iLearningEngines' stock price plunged over 50%. The subsequent SEC subpoena and auditor withdrawal have further eroded investor confidence, leading to another significant decline in the company's share price.
Securities Class Action Against iLearningEngines:
Class Period: Apr. 22, 2024 – Aug. 28, 2024
Lead Plaintiff Deadline: Dec. 6, 2024
Visit: www.hbsslaw.com/investor-fraud/aile
Contact the Firm Now: AILE@hbsslaw.com
844-916-0895
A class-action lawsuit echoing the claims made by Hindenburg has been filed against iLearningEngines and its most senior executives, alleging that the company made false and misleading statements to investors about its financial performance and business operations. The lawsuit claims that investors were misled about the true nature of the company's revenue and expenses, as well as its relationship with Experion.
Prominent shareholder rights firm Hagens Berman has launched an investigation into the allegations.
“The recent revelations about iLearningEngines raise serious concerns about the company's financial integrity and corporate governance,” 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.
Contact:
Reed Kathrein, 844-916-0895
