NEW YORK, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased or otherwise acquired Innodata Inc. (“Innodata” or the “Company”) (NASDAQ: INOD) securities between May 9, 2019 through February 14, 2024, inclusive (the “Class Period”).
On February 15, 2024, Wolfpack Research published a report (the “Wolfpack Report”) revealing that Innodata misrepresented the nature and extent of its business and operations. The Wolfpack Report purported to show that Innodata’s AI is really “smoke and mirrors” and compared the Company’s marketing claims to “putting lipstick on a pig.” Although Innodata touted its ostensible status as an AI pioneer, the Wolfpack Report alleged that other companies were only hiring Innodata for cheap labor and that its operations were powered by thousands of low-wage offshore workers, not proprietary AI technology. The Company also stopped disclosing its Research and Development (R&D) spend after the first quarter of 2021. The Wolfpack Report highlighted that Innodata’s total investment in R&D over the past five years was only $4.4 million, with even less allocated to R&D in 2023 than what the Company spent promoting its “AI” technology through press releases.
On this news, Innodata’s stock price fell $3.74 per share, or 30.5%, to close at $8.52 per share on February 15, 2024.
Investors who purchased or otherwise acquired shares of Innodata should contact the Firm prior to the April 22, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
