Xiao-I (US:AIXI) Prnewswireยท2024-10-19 15:05Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Xiao-I Corporation due to alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action by December 16, 2024 [2][3]. Group 1: Legal Investigation and Claims - The firm is encouraging investors who suffered losses exceeding $50,000 in Xiao-I to discuss their legal options [1]. - The complaint alleges that Xiao-I and its executives made false or misleading statements regarding the company's financial health and compliance with regulations [3]. - Specific allegations include downplaying risks related to Chinese shareholders' non-compliance, failure to adhere to GAAP, and overstating AI capabilities and R&D resources [3]. Group 2: Financial Performance and Stock Price Impact - Xiao-I launched its IPO on March 8, 2023, selling 5.7 million ADSs at $6.80 each, but the stock price has since dropped significantly, leading to investor losses [4]. - Following the disclosure of potential regulatory issues in an amended annual report, the ADS price fell by 11.56% to $7.11 on August 11, 2023 [4]. - On July 15, 2024, Xiao-I received a notification from NASDAQ regarding non-compliance with the minimum bid price requirement, causing the ADS price to drop to approximately $0.67 [5]. Group 3: Class Action Participation - The lead plaintiff in the class action will be the investor with the largest financial interest who is also typical of class members [6]. - Any member of the putative class can move to serve as lead plaintiff or remain an absent class member without affecting their ability to share in any recovery [6]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding Xiao-I's conduct [6].