Investor Class Action Against iLearningEngines Following Short Seller Report

SAN FRANCISCO, Nov. 07, 2024 (GLOBE NEWSWIRE) -- A recent report from a well-known activist short seller has raised serious questions about the financial stability and business strategy of iLearningEngines AILE, leading to an investor class action lawsuit.

Hagens Berman is urging investors who have suffered significant losses in iLearningEngines to file reports of their losses as soon as possible.

Allegations of Financial Misconduct

The report from Hindenburg Research, a firm recognized for uncovering corporate misconduct, accused the AI-based learning automation company of manipulating revenue figures and employing dubious accounting methods. Some of the main claims in the report include:

• Related Party Transactions: Hindenburg alleges that a considerable segment of iLearningEngines' reported revenue and expenditure is funneled through a related but undisclosed entity in the UAE known as Experion Technologies.
• Deceptive SEC Filings: The firm is accused of misleading the SEC concerning its association with Experion, allegedly denying any links while evidence implies otherwise.
• Revenue Inflation: The accuracy of iLearningEngines’ revenue claims is questioned, especially concerning its operations in India, where revenue from its only subsidiary reportedly falls well below the company's reported figures.
• Inadequate Auditing Practices: The auditing company for iLearningEngines, Marcum LLP, has been criticized for past audit quality issues and has faced penalties from the PCAOB and the SEC.

In response to the Hindenburg report, iLearningEngines' stock value dropped significantly, by more than 50%.

Class Action Lawsuit Filed

Following the alarming report and the subsequent decline in stock price, a class-action lawsuit has been initiated against iLearningEngines. This lawsuit represents investors who purchased shares between April 22 and August 28, 2024, and claims that the company engaged in deceptive practices.

The class action mirrors the allegations made by Hindenburg, asserting that the company’s optimistic public statements about its operations and outlook were misleading due to the alleged scheme of inflating revenue and expenses through an undisclosed "Technology Partner." The lawsuit seeks to reclaim losses for investors who believe they were misled by iLearningEngines' actions.

Investigation by Hagens Berman

The esteemed shareholder rights firm Hagens Berman has commenced an investigation into the situation.

Reed Kathrein, a partner at Hagens Berman leading the investigation, stated, "Investors who relied on iLearningEngines' seemingly misleading claims may be facing substantial financial losses."

If you have invested in iLearningEngines and have experienced significant losses, or if you possess information that might aid the investigation, please report your losses now.

For additional insights and answers to common questions regarding the iLearningEngines case and the ongoing investigation, click for more information.

Whistleblower Opportunities

Individuals with non-public information about iLearningEngines are encouraged to consider their options to assist in the investigation or participate in the SEC Whistleblower program. Under this initiative, whistleblowers providing original information may be eligible for rewards totaling up to 30% of any successful recovery by the SEC. For more details, interested parties can contact Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman

Hagens Berman is a prominent global plaintiffs' rights law firm specializing in complex litigation aimed at ensuring corporate accountability. The firm advocates for investors, whistleblowers, employees, consumers, and others affected by corporate misconduct. Having recovered over $2.9 billion for victims of corporate negligence, Hagens Berman continues to represent those wronged by unethical business practices. More information about the firm and its successful cases can be found on its website. Follow them for updates on social media.

iLearningEngines, lawsuit, HagensBerman