NEW YORK, April 04, 2023 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of C3.ai, Inc. (“C3.AI” or the “Company”) (NYSE: AI), a software company focused on developing, deploying and operating enterprise AI applications. Click here to join investigation.
If you acquired C3.AI securities and would like to discuss our investigation, please click here or contact us by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
On April 4, 2023, short-seller Kerrisdale Capital stated that it had sent a letter to C3.AI’s auditor, Deloitte & Touche LLP, about accounting and disclosure issues. Reportedly, the letter states “[i]n our opinion, C3.ai has utilized highly aggressive accounting to inflate its income statement metrics in order to meet sell-side analyst estimates for revenue and certain profit metrics, and to conceal significant deterioration in its underlying operations.” The Kerrisdale Capital website states that the following issues are discussed in the letter to C3.AI’s auditor:
- “The highly conspicuous growth in unbilled receivables to levels we’ve never before seen in software companies”
- “Opaque, confusing and highly concerning disclosures and financials related to the company’s related party and very large customer, Baker Hughes”
- “Efforts to inflate gross profit margins by reclassifying costs of revenue as research and development expenses”
- “Classification of significant revenue as subscription revenue that in actuality is services- or consulting-oriented revenue”
- “Significant turnover in chief financial officers, and the appointment of successively less qualified CFOs over time”
On April 4, 2023, following this news, C3.AI shares fell more than 26%, $8.92 per share, to close at $24.95 per share.
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If you have any questions about this investigation, please contact:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
