NEW YORK, Feb. 28, 2024 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Innodata Inc. (“Innodata” or the “Company”) (NASDAQ: INOD). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Innodata and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until April 22, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Innodata securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On February 15, 2024, Wolfpack Research published a report (the “Wolfpack Report”) revealing that Innodata misrepresented the nature and extent of its business and operations. The Wolfpack Report purported to show that Innodata’s AI is really “smoke and mirrors” and compared the Company’s marketing claims to “putting lipstick on a pig.” Although Innodata touted its ostensible status as an AI pioneer, the Wolfpack Report alleged that other companies were only hiring Innodata for cheap labor and that its operations were powered by thousands of low-wage offshore workers, not proprietary AI technology. The Company also stopped disclosing its Research and Development (R&D) spend after the first quarter of 2021. The Wolfpack Report highlighted that Innodata’s total investment in R&D over the past five years was only $4.4 million, with even less allocated to R&D in 2023 than what the Company spent promoting its “AI” technology through press releases.
On this news, Innodata’s stock price fell $3.74 per share, or 30.5%, to close at $8.52 per share on February 15, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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