SAN FRANCISCO, Oct. 07, 2024 (GLOBE NEWSWIRE) — iLearningEngines, a leading artificial intelligence company, is under fire after a securities fraud class action lawsuit was filed against it in the U.S. District Court for the District of Maryland.
Hagens Berman urges iLearningEngines, Inc. (NASDAQ: AILE) investors who suffered substantial losses to submit your losses now.
Class Period: Apr. 22, 2024 – Aug. 28, 2024
Lead Plaintiff Deadline: Dec. 6, 2024
Visit: www.hbsslaw.com/investor-fraud/aile
Contact the Firm Now: AILE@hbsslaw.com
844-916-0895
Class Action Lawsuit Against iLearningEngines, Inc. (AILE):
The suit, brought on behalf of investors who purchased iLearningEngines securities between April 22 and August 28, 2024, alleges that the company and its executives engaged in a scheme to inflate the company’s revenue through undisclosed related-party transactions.
According to the complaint, iLearningEngines used its undisclosed related party, referred to as the “Technology Partner,” to report “largely fake” revenue and expenses. The suit claims that the company’s positive statements about its business, operations, and prospects were materially misleading.
The fraud allegedly came to light on August 29, 2024, when Hindenburg Research published a scathing report titled “iLearningEngines: An Artificial Intelligence SPAC With Artificial Partners and Artificial Revenue.” In its report, Hindenburg Research alleged that nearly all of the Company’s revenue and expenses in 2022 and 2023 were run through an undisclosed related party, which the Company refers to as their “Technology Partner.” Hindenburg Research further alleged that iLearningEngines uses its undisclosed related party relationship to report revenue and expenses that are “largely fake.” Among other things, Hindenburg Research alleged the Company used its undisclosed related party relationship with this Technology Partner to falsely report $138 million.
Hindenburg’s investigation identified the “Technology Partner” as Experion Technologies, whose American contact is iLearningEngines’ CEO, Harish Chidambaran. The report noted that Experion’s American address is also Chidambaran’s, leading to allegations that prior representations to the SEC and investors, which claimed the “Technology Partner” was not a related party, were false.
Following the report, the company’s stock price plummeted by over 50%.
Hagens Berman, a prominent shareholder rights firm, has launched an investigation.
“We are looking into whether iLearningEngines may have misled investors about its business prospects and its financial reporting,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in iLearningEngines and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the iLearningEngines case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding iLearningEngines should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AILE@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
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