Xiao-I (US:AIXI) GlobeNewswire News Roomยท2024-10-21 21:36Core Viewpoint - Rosen Law Firm has filed a class action lawsuit on behalf of purchasers of Xiao-I Corporation's American depository shares (ADSs) related to its initial public offering (IPO) and subsequent securities purchases, alleging misleading statements and non-disclosure of significant risks [1][4]. Group 1: Lawsuit Details - The class action lawsuit pertains to ADSs purchased during the IPO on March 9, 2023, and securities bought between March 9, 2023, and July 12, 2024 [1]. - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - The lawsuit claims that Xiao-I downplayed risks related to compliance issues with Chinese regulations, specifically Circular 37 Registration, affecting its ability to utilize IPO proceeds [4]. Group 2: Allegations Against Xiao-I - Allegations include failure to comply with U.S. Generally Accepted Accounting Principles (GAAP) in financial statements and overstating efforts to address material weaknesses in financial controls [4]. - The company reportedly incurred significant research and development (R&D) expenses to compete in the AI industry, which were downplayed in public statements [4]. - The lawsuit asserts that these misrepresentations led to a substantial likelihood of failing to meet NASDAQ's listing requirements, including maintaining a minimum closing bid price of $1.00 per share [4]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company and being ranked highly for securities class action settlements [3]. - The firm has recovered hundreds of millions of dollars for investors, with over $438 million secured in 2019 alone [3].