| COMPANY |
iLearningEngines, Inc. |
| COURT |
United States District Court for the District of Maryland |
| CASE NUMBER |
24-cv-02900 |
| JUDGE |
The Hon. Deborah K. Chasanow |
| CLASS PERIOD |
April 22, 2024 through August 28, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS DECEMBER 6, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
On August 29, 2024, before the market opened, Hindenburg Research published a short-seller report (the “Hindenburg Report”) alleging that nearly all of the company’s revenue and expenses in 2022 and 2023 were run through an undisclosed related party, which the company referred to as its “Technology Partner.” The Hindenburg Report further alleged that iLearningEngines used its undisclosed related-party relationship to report revenues and expenses that were “largely fake” and that the company falsely reported $138 million in revenue from its Indian market in 2022, when in reality, total revenue in India was approximately $853,471, or 99.4% less than what the company had reported for that period. On this news, the price of iLearningEngines common stock declined $1.70 per share, or approximately 53%, from a close of $3.19 per share on August 28, 2024, to close at $1.49 per share on August 29, 2024.
The complaint alleges that, during 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 misrepresented and/or failed to disclose that: (1) 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 its “Technology Partner”; (2) the company significantly overstated its financial results by using its Technology Partner to report “largely fake” revenue and expenses; and (3) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.