NEW YORK, Feb. 21, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Innodata Inc. (“Innodata” or the “Company”) (NASDAQ: INOD) in the United States District Court for the District of New Jersey on behalf of all persons and entities who purchased or otherwise acquired Innodata securities between May 9, 2019 and February 14, 2024, both dates inclusive (the “Class Period”). Investors have until April 22, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
The lawsuit alleges that on February 15, 2024, Wolfpack Research published a report revealing that Innodata misrepresented the nature and extent of its business and operations. The Wolfpack Report showed that Innodata’s AI is really “smoke and mirrors” and that the Company’s marketing claims are like “putting lipstick on a pig.” While the Defendants touted Innodata’s status as an AI pioneer, other companies were only hiring Innodata for cheap labor and its operations were powered by thousands of low-wage offshore workers, not proprietary AI technology. Innodata also stopped disclosing its Research and Development spend after the first quarter of 2021. The Wolfpack Report highlighted that Innodata’s total R&D investment over the past five years was only $4.4 million, with even less allocated to R&D in 2023 than what was spent on promoting its “AI” technology through press releases.
Throughout the Class Period, the complaint alleges Defendants made false and/or misleading statements, as well as failed to disclose material facts, including that Innodata: (1) did not have a viable AI technology; (2) its Goldengate AI platform is a rudimentary software developed by just a handful of employees; (3) it was not going to utilize AI to any significant degree for new Silicon Valley contracts; (4) it was not effectively investing in research and development for AI; and (5) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about Innodata’s AI business and development and related financial results, growth, and prospects.
On this news, the price of Innodata common stock declined by $3.74 per share, or approximately 30.5%, on February 15, 2024.
If you purchased or otherwise acquired Innodata shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
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