Xiao-I (US:AIXI) Prnewswire·2024-12-16 10:45Core Viewpoint - Xiao-I Corporation (NASDAQ: AIXI) is facing a class action lawsuit due to allegations of issuing materially false and misleading statements regarding its financial health and operational capabilities, particularly in the AI sector [2]. Summary by Relevant Sections Allegations - The complaint alleges that during the class period from March 9, 2023, to July 12, 2024, Xiao-I downplayed the risks associated with non-compliance by certain Chinese shareholders, affecting its ability to utilize offering proceeds for intended business purposes [2]. - It is claimed that Xiao-I failed 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 its business and 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]. 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]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle [3]. Law Firm Information - The Gross Law Firm is leading the class action, emphasizing its commitment to protecting investors' rights against deceit and fraud [4].