Xiao-I (US:AIXI) GlobeNewswire News Roomยท2024-10-23 16:35Core Viewpoint - Xiao-I Corporation (NASDAQ: AIXI) is facing a class action lawsuit due to allegations of misleading statements and non-compliance with accounting principles, which may have inflated its stock price and misrepresented its financial health [2][4]. Group 1: Allegations and Issues - The class period for the allegations spans from March 9, 2023, to July 12, 2024 [2]. - Allegations include downplaying risks related to non-compliance by Chinese shareholders, which affected the company's ability to utilize offering proceeds [2]. - Xiao-I is accused of failing to comply with Generally Accepted Accounting Principles (GAAP) in its financial statements [2]. - The company allegedly overstated its efforts to address material weaknesses in financial controls [2]. - Significant R&D expenses incurred by Xiao-I to compete in the AI industry were downplayed, impacting business and financial results [2]. - The company is said to have overstated its AI capabilities and resources, leading to potential non-compliance with NASDAQ's Minimum Bid Price Requirement [2]. Group 2: Next Steps for Shareholders - Shareholders are encouraged to register for the class action by December 16, 2024, to potentially become lead plaintiffs [3]. - Registration allows shareholders to receive updates through portfolio monitoring software regarding the case's progress [3]. - Participation in the case incurs no cost or obligation for shareholders [3].