BOSTON, April 16, 2024 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockleviton.com), a national securities litigation firm, announces that it has filed a class action lawsuit on behalf of shareholders against Innodata, Inc. (NASDAQ: INOD) and certain of its executives, for securities fraud. The complaint was brought in United States District Court for the District of New Jersey and is captioned D’Agostino v. Innodata, Inc., et al., No. 2:24-cv-00971 (D.N.J.) and is brought on behalf of investors that incurred damages on their purchases in Innodata, Inc. securities between May 9, 2019 and February 14, 2024, inclusive.
A class has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
Investors who purchased Innodata, Inc. shares between May 9, 2019 and February 14, 2024 and who have lost money are strongly encouraged to contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockleviton.com, or to visit our website for information on the case.
The deadline to seek appointment as lead plaintiff is April 22, 2024.
The lawsuit alleges that on February 15, 2024, Wolfpack Research published a report revealing that Innodata misrepresented the nature and extent of its business and operations. The Wolfpack Report showed that Innodata’s AI is really “smoke and mirrors” and that the Company’s marketing claims are like “putting lipstick on a pig.” While the Defendants touted Innodata’s status as an AI pioneer, other companies were only hiring Innodata for cheap labor and its operations were powered by thousands of low-wage offshore workers, not proprietary AI technology. Innodata also stopped disclosing its Research and Development spend after the first quarter of 2021. The Wolfpack Report highlighted that Innodata’s total R&D investment over the past five years was only $4.4 million, with even less allocated to R&D in 2023 than what was spent on promoting its “AI” technology through press releases.
Throughout the Class Period, the complaint alleges Defendants made false and/or misleading statements, as well as failed to disclose material facts, including that Innodata: (1) did not have a viable AI technology; (2) its Goldengate AI platform is a rudimentary software developed by just a handful of employees; (3) it was not going to utilize AI to any significant degree for new Silicon Valley contracts; (4) it was not effectively investing in research and development for AI; and (5) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about Innodata’s AI business and development and related financial results, growth, and prospects.
On this news, the price of Innodata common stock declined by $3.74 per share, or approximately 30.5%, on February 15, 2024.
If you purchased or acquired Innodata, Inc. common stock between May 9, 2019 and February 14, 2024 and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockleviton.com, or visit our website. The deadline to seek appointment as lead plaintiff is April 22, 2024.
Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, or call (617) 398-5600 or email cases@blockleviton.com with any questions.
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CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: cases@blockleviton.com
SOURCE: Block & Leviton LLP
www.blockleviton.com
