SAN FRANCISCO, Nov. 18, 2024 (GLOBE NEWSWIRE) -- The price of iLearningEngines (NASDAQ: AILE) shares crashed over 30% lower on November 18, 2024 after announcing that (i) the company had placed CFO S. Farhan Naqvi on administrative leave effective immediately, (ii) its outside auditor had withdrawn its prior opinions, (iii) investors should no longer rely on previously-filed financial statements, and (iv) the SEC had subpoenaed the company seeking various documents and information.
The company’s recent announcement follows a scathing report from a renowned activist short seller that cast doubt on the financial health and business model of iLearningEngines and gave rise to an investor class action.
Hagens Berman urges iLearningEngines investors who suffered substantial losses to submit your losses now.
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
Securities Class Action Against iLearningEngines:
The pending litigation focuses on the propriety of iLearningEngines’ disclosures about, among other matters, the source and veracity of its revenues and expenses and its relationship with an entity the company has called its “Technology Partner.”
The complaint alleges that iLearningEngines made false and misleading statements and failed to disclose that: (1) the “Technology Partner” was in fact a related party; (2) the company used the “Technology Partner” to report largely fake revenues and expenses; and (3) as a result of the foregoing, the company significantly overstated its revenue.
Investors began to learn the truth on August 29, 2024, when Hindenburg Research published a report accusing the AI-powered learning automation company of fabricating revenue and engaging in questionable accounting practices. Among other things, Hindenburg alleged that a significant portion of the company’s revenues and expenses are routed through an undisclosed related party (Experion Technologies), the company lied to the SEC abut its relationship with Experion, and the company artificially inflated its revenues.
In response, the price of iLearningEngines shares plummeted by over 50% that day.
After Hindenburg’s report and the lawsuit was filed, another shoe dropped on November 18, 2024, when iLearningEngines filed its current report on Form 8-K. The company announced that it placed its CFO on administrative leave and that the SEC issued a subpoena to the company seeking certain documents and information.
The company also announced that its outside auditor (Marcum) withdrew its prior audit opinions and that all or virtually all of its financial statements filed in connection with its SPAC merger, which closed on April 16, 2024, should not be relied on.
In response, the price of iLearningEngines crashed over 30% that day.
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.
Contact:
Reed Kathrein, 844-916-0895
