iLearningEngines (AILE) Accused of Securities Fraud –

SAN FRANCISCO, Oct. 24, 2024 (GLOBE NEWSWIRE) — iLearningEngines, Inc., an artificial intelligence company (NASDAQ: AILE) is facing a securities fraud class action lawsuit filed in the U.S. District Court for the District of Maryland. The lawsuit accuses the company and its executives of inflating revenue through undisclosed transactions with related parties.

Hagens Berman urges iLearningEngines investors who have suffered significant losses to file your losses now.

Lesson period: April 22, 2024 – August 28, 2024
Lead Plaintiff Deadline: December 6, 2024
Visit: www.hbsslaw.com/investor-fraud/aile
Contact the company now: [email protected]
844-916-0895

Class Action Lawsuit Against iLearningEngines, Inc. Alleges “Fake” Revenue and Misleading Statements

The lawsuit, filed on behalf of investors who purchased iLearningEngines shares between April 22 and August 28, 2024, alleges that the company used an unnamed “technology partner” to generate fabricated revenue and expenses to report. The complaint also alleges that iLearningEngines' positive public statements about its operations and future prospects as a result of this plan were materially misleading.

Hindenburg research report triggers close scrutiny

The alleged fraud came to light on August 29, 2024, when short seller Hindenburg Research published a report titled “iLearningEngines: An Artificial Intelligence SPAC With Artificial Partners and Artificial Revenue.” The report claimed that almost all of the company's revenues and expenses in 2022 and 2023 were processed through an unnamed related party, the aforementioned “Technology Partner.” Hindenburg alleged that this partner was used to report “largely falsified” income and expenses, including one specific instance of income being falsely inflated by $138 million.

Hindenburg's investigation reportedly identified the “technology partner” as Experion Technologies, whose US contact information matched that of iLearningEngines CEO Harish Chidambaran. This led to claims that previous representations to the SEC and investors that the “Technology Partner” was not affiliated with the company were demonstrably false.

After the Hindenburg report, iLearningEngines' stock price reportedly plunged over 50%.

Shareholder rights firm launches investigation

Well-known shareholder rights firm Hagens Berman has launched an investigation into the matter. “We are investigating whether iLearningEngines may have inflated its financial performance through undisclosed related party transactions,” said Reed Kathrein, the Hagens Berman partner who led the investigation

If you have invested in iLearningEngines and are experiencing significant losses or have knowledge that could assist the company's investigation, submit your losses now »

If you would like more information and answers to frequently asked questions about the iLearningEngines case and our investigation, read more »

Whistleblowers: Anyone with non-public information about iLearningEngines should consider their options to assist in the investigation or utilize the SEC's whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards totaling up to 30 percent of any successful recovery by the SEC. For more information, call Reed Kathrein at 844-916-0895 or send an email to [email protected].

About Hagens Berman
Hagens Berman is a global complex plaintiffs' rights law firm with a focus on corporate responsibility. The firm has a robust practice representing investors, whistleblowers, employees, consumers and others in cases that achieve real results for those harmed by corporate negligence and other wrongdoings. The Hagens Berman team has secured more than $2.9 billion in this area of ​​law. You can find out more about the law firm and its successes at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895