SAN FRANCISCO, Oct. 18, 2024 (GLOBE NEWSWIRE) -- Artificial intelligence company iLearningEngines, Inc. (NASDAQ: AILE) is facing a securities fraud class action lawsuit filed in the U.S. District Court for the District of Maryland. The suit alleges the company and its executives inflated revenue through undisclosed related-party transactions.
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
Class Action Lawsuit Against iLearningEngines, Inc. Claims “Fake” Revenue and Misleading Statements
The lawsuit, filed on behalf of investors who purchased iLearningEngines stock between April 22 and August 28, 2024, contends that the company used an undisclosed "Technology Partner" to report fabricated revenue and expenses. The complaint further alleges that iLearningEngines' positive public statements about its business operations and future prospects were materially misleading due to this scheme.
Hindenburg Research Report Triggers Scrutiny
The alleged fraud came to light on August 29, 2024, when short-seller Hindenburg Research published 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 in 2022 and 2023 were channeled through an undisclosed related party, the aforementioned "Technology Partner." Hindenburg alleged this partner was used to report "largely fake" revenue and expenses, including a specific instance of falsely inflated revenue by $138 million.
Hindenburg's investigation reportedly identified the "Technology Partner" as Experion Technologies, whose U.S. contact information matched that of iLearningEngines CEO Harish Chidambaran. This led to allegations that previous representations to the SEC and investors, stating the "Technology Partner" was not affiliated with the company, were demonstrably false.
Following the Hindenburg report, iLearningEngines' stock price reportedly plummeted by over 50%.
Shareholder Rights Firm Launches Investigation
Prominent shareholder rights firm Hagens Berman has launched an investigation into the matter. "We are looking into whether iLearningEngines may have inflated its financial performance through undisclosed related party transactions," 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
