16-10-2024 | DEADLINE ALERT: Faruqi & Faruqi, LLP is investigating claims on behalf of investors of Xiao-I Corporation

NEW YORK CITY, NY / ACCESSWIRE / October 16, 2024 / Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages investors who have suffered losses exceeding $50,000 in Xiao-I to contact him directly to discuss their options

If you have suffered losses of more than $50,000 Xiao-I resulting from the purchase of (a) Xiao-I American Depository Shares (ADSs) issued in connection with the Company’s initial public offering on or about March 9, 2023 and/or (b) Xiao-I securities between March 9, 2023 and July 12, 2024 and would like to discuss your legal rights, please call Faruqi & Faruqi partner Josh Wilson direct bee 877-247-4292 or 212-983-9330 (Ext. 1310).

(You can also click here for additional information)

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Xiao-I Corporation (“Xiao-I” or the “Company”) (NASDAQ:AIXI) and reminds investors of the Deadline December 16, 2024 to serve as lead plaintiff in a federal securities class action filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As set forth below, the Complaint alleges that the Company and its executives violated the federal securities laws by making false and/or misleading statements and/or failing to disclose that (1) Defendants disclosed the true extent and severity of had downplayed the risks faced by Xiao-I as a result of certain Chinese shareholders’ non-compliance with Circular 37 Registration, including the Company’s inability to use the proceeds of the Offering for intended business purposes; (2) Xiao-I failed to comply with GAAP in preparing its financial statements; (3) Defendants overestimated Xiao-I’s efforts to remediate material weaknesses in the Company’s financial controls; (4) Xiao-I was forced to incur significant R&D costs to compete effectively in the AI ​​industry; (5) Xiao-I downplayed the significant negative impact that such expenditures would have on the company’s business and financial results; (6) Accordingly, Xiao-I has overestimated its AI capabilities, R&D resources and overall ability to compete in the AI ​​market; (7) as a result of all of the foregoing, there was a substantial probability that Xiao-I would fail to meet NASDAQ’s minimum bid price requirement; and (8) as a result, Defendants’ offering documents and public statements throughout the Class Period were materially false and/or misleading and did not contain information required to be disclosed therein.

On or around March 8, 2023, Xiao-I launched its initial public offering (IPO), selling 5.7 million American Depositary Shares (ADSs) at $6.80 each. Since the IPO, the price of Xiao-I’s ADSs has fallen significantly, causing losses for investors.

On August 10, 2023, Xiao-I Corporation filed on Form 10-K/A its amended annual report for the year ended December 31, 2022 with the U.S. Securities and Exchange Commission. In the amended annual report, Xiao-I disclosed: “However, should there be any future changes in the laws and regulations of the People’s Republic of China or the internal control policies of the Bank of Ningbo, (Zhizhen Artificial Technology (Shanghai) Company Limited, a subsidiary of the company) may therefore be restricted from transferring funds from abroad to the capital account at the Bank of Ningbo.

On this news, the price of Xiao-I American Depositary Shares (“ADSs”) fell $0.93 per ADS, or 11.56%, to close at $7.11 on August 11, 2023.

On July 15, 2024, Xiao-I issued a press release announcing “that it had received a notification letter dated July 11, 2024 (the “Deficiency Letter”) from the Listing Qualifications Department of (the) he (NASDAQ), indicating that the The Company no longer meets the minimum bid price requirement set forth in Nasdaq Listing Rule 5450(a)(1) as the Company’s closing bid price per (ADS) has been lower for a period of 30 consecutive trading days.”

On this news, Xiao-I’s ADS price fell 2.28% to close at approximately $0.67 per ADS on July 15, 2024.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class, which is adequate and typical of the class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent member of the class. Your ability to share in any recovery is not affected by the decision whether or not to serve as lead plaintiff.

Faruqi & Faruqi, LLP also encourages anyone with information about Xiao-I’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

For more information about the Xiao-I Corporation class action, go to www.faruqilaw.com/AIXI or phone conversation Faruqi & Faruqi Partner Josh Wilson direct bee 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X or on Facebook.

Advertising lawyer. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to future issues. We would like to take the opportunity to discuss your specific case. All communications will be treated confidentially.

SOURCE: Faruqi & Faruqi, LLP

View the original press release on accesswire.com