SAN FRANCISCO, Sept. 19, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges iLearningEngines, Inc. (NASDAQ: AILE) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.
On September 5, 2024, iLearningEngines announced that its board formed a special committee to investigate serious accusations against the company levied by Hindenburg Research on August 29, 2024. The results of the internal investigation are not yet available.
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iLearningEngines Faces Investor Scrutiny Following SPAC Merger:
In April 2024, iLearningEngines went public through a SPAC merger, but the company is now under intense scrutiny from investors regarding the propriety of its disclosures of related party transactions and the accuracy of its financial statements.
Hagens Berman, a prominent shareholder rights firm, has launched an investigation after iLearningEngines’ share price plummeted by as much as 59% on August 29, 2024. This sharp decline coincided with the release of a damning report by Hindenburg Research, titled “iLearningEngines: An Artificial Intelligence SPAC With Artificial Partners and Artificial Revenue.”
Hindenburg Research challenged iLearningEngines’ claims of being a rapidly growing, high-margin pioneer in enterprise AI within the corporate and educational learning sectors. The report suggested that both the company’s revenue and expenses might be largely fabricated.
The report further alleged that nearly all of iLearningEngines’ revenue and expenses in 2022 were funneled through an undisclosed related party, referred to as a “Technology Partner.” For 2023, Hindenburg estimated that over 92% of revenue and more than 96% of the cost of goods sold were similarly processed through this related party. Additionally, Hindenburg accused iLearningEngines of significantly overstating the revenues of its India subsidiary for the fiscal year ending in March 2023 by over 99%.
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.
“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 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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