The Plot Unravels: iLearningEngines, Inc. Faces Legal Turmoil
A looming deadline has investors on edge in the wake of a class-action lawsuit against iLearningEngines, Inc. The deadline for filing a lead plaintiff motion is set for December 6, 2024, leaving a gap for redress for those who purchased or acquired iLearningEngines securities from April 22, 2024, to August 28, 2024 – a period dubbed as the “Class Period.”
The news that rattled the market came on August 29, 2024, with a report from Hindenburg Research titled “iLearningEngines: An Artificial Intelligence SPAC With Artificial Partners and Artificial Revenue.” The report leveled serious allegations, claiming that almost all of the Company’s financial transactions from 2022 and 2023 were funneled through an undisclosed related party known as the “Technology Partner.” Hindenburg Research further accused iLearningEngines of inflating revenue figures, citing a case where the Company purportedly declared $138 million in revenue from the Indian market in 2022, whereas the actual figure was a mere $853,471 – a staggering 99.4% less than reported.
The fallout was immediate and severe. iLearningEngines’ share price plummeted by $1.70 or 53.3% to close at $1.49 on August 29, 2024, amidst intense trading activity.
The lawsuit alleges that throughout the Class Period, the Company’s executives disseminated false and misleading information, concealing critical facts about the business and its future prospects. It is alleged that they failed to disclose the Company’s covert relationship with the “Technology Partner,” the utilization of this relationship to fabricate financial results, and the subsequent overstatement of revenue, painting a rosy picture that was, in reality, a mirage.
Investors with stakes during the Class Period now have until December 6, 2024, to come forward seeking to lead the lawsuit. Membership in the class action does not require immediate action; investors can opt to stay passive or select legal representation for forthcoming proceedings. For more details or queries on the case, Charles Linehan, Esquire, of GPM, can be reached at 310-201-9150 or via email at shareholders@glancylaw.com.
Stay connected for further updates on LinkedIn, Twitter, or Facebook.
For those pursuing legal recourse or seeking information, contacting Charles Linehan, Esquire, or visiting Glancy Prongay & Murray LLP’s website offers avenues for clarification and next steps.
As the legal battle ensues, investors and industry watchers await the unfolding of events in the iLearningEngines saga, contemplating the ramifications and lessons to be gleaned from this episode.