Xiao-I (US:AIXI) Prnewswireยท2024-12-12 10:45Core Viewpoint - The Gross Law Firm is notifying shareholders of Xiao-I Corporation (NASDAQ: AIXI) about a class action lawsuit due to alleged misleading statements and non-compliance with financial regulations during the class period from March 9, 2023, to July 12, 2024 [1][2]. Group 1: Allegations Against Xiao-I Corporation - The complaint alleges that Xiao-I downplayed the risks associated with non-compliance from certain Chinese shareholders, affecting the company's ability to utilize offering proceeds for intended business purposes [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 and exaggerated its AI capabilities and R&D resources [2]. - Significant R&D expenses incurred by Xiao-I to compete in the AI industry were downplayed, which negatively impacted the company's financial results [2]. - There is a substantial likelihood that Xiao-I would fail to meet NASDAQ's Minimum Bid Price Requirement due to these issues [2]. Group 2: Class Action Details - Shareholders who purchased AIXI shares during the specified class period are encouraged to register for the class action, with a deadline for lead plaintiff appointment set for December 16, 2024 [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's progress [3]. - Participation in the case incurs no cost or obligation for the shareholders [3].