Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Oct. 07, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises iLearningEngines, Inc. ("iLearningEngines" or the "Company") (NASDAQ: AILE) investors of a class action representing investors that bought securities between April 22, 2024 and August 28, 2024, inclusive (the "Class Period"). iLearningEngines investors have until December 6, 2024 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On August 29, 2024, before the market opened, Hindenburg Research released a report titled “iLearningEngines: An Artificial Intelligence SPAC With Artificial Partners and Artificial Revenue.” The report claimed that nearly all of the company’s revenue and expenses for 2022 and 2023 were funneled through a related party that the company calls its “Technology Partner.” Hindenburg alleged that this relationship allowed iLearningEngines to report revenue and expenses that were mostly fabricated. Specifically, they claimed that iLearningEngines falsely reported $138 million in revenue from India in 2022, while the actual revenue was only about $853,471—99.4% less than what was claimed.
Following this news, the company’s stock price dropped by $1.70 (53.3%), closing at $1.49 on August 29, 2024, with unusually high trading volume.
The class action complaint alleges that throughout the Class Period, the defendants made false or misleading statements and failed to disclose important negative facts about the company’s business and prospects. In particular, the complaint states that the defendants did not inform investors: (1) that the “Technology Partner” was a related party; (2) that this partner was used to report mostly fake revenue and expenses; (3) that the company significantly overstated its revenue; and (4) that the defendants’ positive claims about the company’s business and prospects were misleading and lacked a solid basis.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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