Oct 16, 2024 | DEADLINE ALERT: Faruqi & Faruqi, LLP is investigating claims on behalf of investors in Xiao-I Corporation

NEW YORK CITY, NY / ACCESSWIRE / October 16, 2024 / Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages investors who have suffered losses of more than $50,000 in Xiao-I to contact him directly to discuss their options

If you have suffered losses of more than $50,000 Xiao I as a result of the purchase of (a) Xiao-I American Depository Shares (ADSs) issued in connection with the Company’s initial public offering on or about March 9, 2023, and/or (b) Xiao-I securities between March 9, 2023 . March 2023 and July 12, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310).

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Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating and reminds investors of potential claims against Xiao-I Corporation (“Xiao-I” or the “Company”) (NASDAQ:AIXI). Deadline: December 16, 2024 to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As further discussed below, the complaint alleges that the Company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose that (1) Defendants’ true downplayed the extent and severity of the risks faced by Xiao-I due to the failure of some Chinese shareholders to comply with Circular 37 on registration, including the Company’s inability to use the issue proceeds for intended business purposes; (2) Xiao-I failed to comply with GAAP in preparing its financial statements; (3) Defendants overstated Xiao-I’s efforts to correct material weaknesses in the Company’s financial controls; (4) Xiao-I had to incur significant research and development costs to compete effectively in the AI ​​industry. (5) Xiao-I downplayed the significant adverse impact such expenditures would have on the Company’s business and financial results; (6) Accordingly, Xiao-I overstated its AI capabilities, R&D resources and overall competitiveness in the AI ​​market; (7) As a result of the foregoing, there was a substantial likelihood that Xiao-I would not comply with NASDAQ’s minimum bid price requirement; and (8) As a result, defendants’ offering documents and public statements throughout the Class Period were materially false and/or misleading and failed to contain information required to be contained therein.

On or about March 8, 2023, Xiao-I launched its initial public offering (IPO), selling 5.7 million American Depositary Shares (ADSs) at $6.80 each. Since the IPO, the price of Xiao-I’s ADSs has fallen significantly, resulting in losses for investors.

On August 10, 2023, Xiao-I Corporation filed its amended annual report on Form 10-K/A for the year ended December 31, 2022 with the U.S. Securities and Exchange Commission. In the amended annual report, Xiao-I stated that “if there are any changes to the laws and regulations of the People’s Republic of China or the internal control policies of the Bank of Ningbo in the future, [Zhizhen Artificial Technology (Shanghai) Company Limited, a Company subsidiary] Then the transfer of funds from abroad to their capital account at the Bank of Ningbo may be restricted.”

On this news, the price of Xiao-I American Depositary Shares (“ADSs”) fell $0.93 per ADS, or 11.56%, to close at $7.11 on August 11, 2023.

On July 15, 2024, Xiao-I issued a press release in which it announced “that it has received a notification letter dated July 11, 2024 (the ‘Deficiency Letter’) from the Listing Qualifications Department of.” [t]He [NASDAQ]indicating that the Company is no longer in compliance with the minimum offering price requirement pursuant to Nasdaq Listing Rule 5450(a)(1) as the Company’s closing offering price [ADS] . . . was less than $1.00 for 30 consecutive business days.”

On this news, Xiao-I ADS price fell 2.28% to close at approximately $0.67 per ADS on July 15, 2024.

The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, who is appropriate and typical of the class, and who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may request the Court to serve as lead plaintiff through counsel of their choice, or may elect to take no action and remain an absent class member. Your ability to participate in any recovery will not be affected by the decision to serve as lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information about Xiao-I’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.

To find out more about the Xiao-I Corporation Class action lawsuit, go for it www.faruqilaw.com/AIXI or Call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310).

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SOURCE: Faruqi & Faruqi, LLP

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