Xiao-I (US:AIXI) GlobeNewswire News Roomยท2024-10-21 23:18Core Viewpoint - A class action lawsuit has been filed against Xiao-I Corporation (NASDAQ: AIXI) for allegedly misleading investors regarding its business prospects and financial disclosures related to its IPO on March 9, 2023 [1]. Group 1: Allegations Against Xiao-I Corporation - The complaint claims that the Offering Documents for the IPO were negligently prepared [1]. - Defendants allegedly downplayed the risks associated with non-compliance by certain Chinese shareholders with Circular 37 Registration, affecting the use of IPO proceeds [1]. - Xiao-I is accused of failing to comply with GAAP in its financial statements [1]. - The company purportedly overstated its efforts to address material weaknesses in financial controls [1]. - Significant R&D expenses incurred by Xiao-I to compete in the AI industry were allegedly downplayed, impacting business and financial results [1]. - The company is accused of overstating its AI capabilities, R&D resources, and overall competitiveness in the AI market [1]. - There is a substantial likelihood that Xiao-I may fail to meet NASDAQ's Minimum Bid Price Requirement due to these issues [1]. Group 2: Class Action Participation - Shareholders may be eligible to participate in the class action against Xiao-I Corporation, with a deadline to apply as lead plaintiff by December 16, 2024 [2]. - A lead plaintiff represents other class members in directing the litigation, but participation is not required for recovery [2]. Group 3: Robbins LLP Overview - Robbins LLP is a recognized leader in shareholder rights litigation, having recovered over $1 billion for shareholders since its inception in 2002 [3].