A securities class action has been filed in the USDC — MD. against iLearningEngines, Inc. (AILE) (“iLearningEngines” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired iLearningEngines securities between April 22, 2024 and August 28, 2024, both dates inclusive (the “Class Period”).
iLearningEngines purports to be an “AI-powered learning automation” software company.
On August 29, 2024, before the market opened, Hindenburg Research published a
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.”
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
(1) that the Company’s “Technology Partner” was an undisclosed related party;
(2) that the Company used its undisclosed related party Technology Partner to report “largely fake” revenue and expenses;
(3) that, as a result of the foregoing, the Company significantly overstated its revenue; and
(4) that, as a result of the foregoing, Defendants’ positive statements about iLearningEngines’ business, operations, and prospects were materially misleading and/or lacked a reasonable basis, thereby harming investors.
After the August 29, 2024 Hindenburg Research publication, the Company’s share price fell $1.70 or 53.3%, to close at $1.49 on the same day.
If you purchased iLearningEngines securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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