Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Dec. 03, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Xiao-I Corp. ("Xiao-I" or the "Company") (NASDAQ: AIXI) investors of a class action representing investors that bought securities between March 9, 2023, and July 12, 2024, inclusive (the "Class Period"). Xiao-I investors have until December 16, 2024 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Case Details: The claim arises on July 15, 2024, when, during pre-market hours, Xiao-I issued a press release announcing that it had received a notification letter from the NASDAQ Listing Qualifications Department, dated July 11, 2024 (the "Deficiency Letter"), stating that the Company was no longer in compliance with NASDAQ's minimum bid price requirement.
The Complaint asserts that the Offering Documents were negligently prepared, containing false statements of material fact or omitting necessary information to make the statements not misleading. It further alleges that the Offering Documents were not prepared in accordance with applicable rules and regulations. The Complaint also claims that throughout the Class Period, Defendants made materially false and misleading statements regarding Xiao-I’s business, operations, and prospects. Specifically, the Complaint alleges that the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose the following: (1) Defendants minimized the true extent of risks Xiao-I faced due to certain Chinese shareholders’ non-compliance with Circular 37 Registration, which impacted the Company’s ability to use Offering proceeds for their intended purposes; (2) Xiao-I’s financial statements were not prepared in compliance with GAAP; (3) Defendants exaggerated Xiao-I’s efforts to correct material weaknesses in its financial controls; (4) Xiao-I had to incur significant R&D expenses to compete in the AI industry; (5) Xiao-I downplayed the significant negative impact these expenses would have on the Company's business and financial performance; (6) as a result, Xiao-I overstated its AI capabilities, R&D resources, and its overall ability to compete in the AI market; (7) due to these issues, there was a substantial risk that Xiao-I would fail to meet NASDAQ’s Minimum Bid Price Requirement; and (8) consequently, the Offering Documents and Defendants’ public statements throughout the Class Period were materially false and/or misleading, and omitted required information. Following the announcement, Xiao-I's ADS price dropped 2.28%, closing at approximately $0.67 per ADS on July 15, 2024.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
Attorney Advertising
