NOTICE: C3.ai, Inc. Investors Suffering Substantial Losses Have Opportunity to File Class Action – AI
SAN DIEGO–(BUSINESS WIRE)–The law firm Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of C3.ai, Inc. (NYSE:AI): (a) Class A common stock pursuant to and/or traceable to the offering documents issued in connection with C3’s initial public offering .ai completed on or about December 9, 2020 (the “IPO”); and/or (b) securities between December 9, 2020 and February 15, 2022, both dates inclusive (the “Class Period”) have until May 3, 2022 to seek an appointment as lead plaintiff. Started on March 4, 2022, the C3.ai class action lawsuit – subtitled The Reckstin Family Trust v. C3.ai, Inc.No. 22-cv-01413 (ND Cal.) – accuses C3.ai, and certain of its senior officers and directors, of violating the Securities Act of 1933 and/or the Securities Exchange Act of 1934.
If you have suffered significant losses and wish to act as the lead plaintiff of the C3.ai class action, please provide your information by clicking here. You can also contact attorney JC Sanchez of Robbins Geller by calling 800/449-4900 or emailing [email protected] Principal Applicant’s Requests for C3.ai the class action must be filed with the court no later than May 3, 2022.
CASE ALLEGATIONS: C3.ai is an enterprise artificial intelligence (“AI”) software company. C3.ai claims to have strategic partnerships with Baker Hughes related to the oil and gas markets; SIF related to financial services markets; Raytheon; and AWS, Intel and Microsoft. Pursuant to the IPO offering documents, C3.ai has issued 15.5 million shares of Class A common stock to the public at an IPO price of US$42.00 per share for approximate proceeds for C3.ai of $610 million after applicable underwriting discounts and fees.
the C3.ai class action alleges that the IPO offering documents were negligently prepared and, as a result, contained misrepresentations of material facts or failed to state other facts necessary for the statements made not to be misleading and have not been prepared in accordance with the rules and regulations governing their preparation. the C3.ai the lawsuit further alleges that the IPO’s offering documents and the defendants throughout the class period made false and/or misleading statements and/or failed to disclose that: (i) the partnership of C3.ai with Baker Hughes was deteriorating; (ii) C3.ai used faulty accounting methodology to conceal the deterioration of its partnership with Baker Hughes; (iii) C3.ai faced product adoption challenges and high sales force turnover; (iv) C3.ai overestimated, among other things, the extent of its investment in technology, the description of its customers, its total addressable market (“TAM”), the rate of growth of its market and the scale of alliances with its main business partners; and (v) accordingly, C3.ai’s public statements were materially false and misleading at all material times.
On February 16, 2022, Spruce Point Capital Management released a strong research report and advisory regarding C3.ai. Specifically, Spruce Point claimed to have discovered, among other things, “[e]evidence of a strongly contested partnership with Baker Hughes, a related party and C3.ai’s largest customer”; “[s]signs of problematic financial reporting and accounting for the Baker Hughes joint venture and a revolving door in C3.ai’s CFO position”; this “[c]product adoption challenges and high sales force turnover make C3.ai unlikely to meet aggressive analyst estimates”; “[e]evidence of exaggerated or irreconcilable allegations made by C3.ai”, including “numerous discrepancies” regarding “the value and the cumulative investment made by C3.ai in its technology, the description of its customers, its [TAM], the rate of growth of its market and the extent of alliances with companies such as Microsoft, Hewlett Packard Enterprises, Google Cloud, Intel and Amazon Web Services”; and “[w]tedious corporate governance practices and insider enrichment. Accordingly, Spruce Point “conservatively estimates[d] 40% – 50% downside risk of C3.ai share price. Following the release of the Spruce Point report, C3.ai’s stock price fell nearly 4%.
From the moment the C3.ai a class action lawsuit has been filed, the price of C3.ai’s Class A common stock continues to trade below the IPO price of $42.00 per share, hurting investors.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who has purchased Class A common stock pursuant to the offering documents issued in connection with the IPO and/or the securities during the period covered by the recourse to seeking an appointment as lead applicant in the C3.ai class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the class action. The lead plaintiff may select a law firm of their choice to litigate the class action. The ability of an investor to share in any potential future rally in the class legal action does not depend on the status of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The firm is ranked No. 1 in the 2021 ISS Securities Class Action Services Top 50 report for recovering nearly $2 billion for investors last year alone, more than triple the amount recovered by any other firm from plaintiffs. With 200 attorneys in 9 offices, Robbins Geller attorneys have secured many of the largest securities class action recoveries in history, including the largest securities class action recovery on record – $7.2 billion dollars – in In re Enron Corp. Dry. Litigation Please visit http://www.rgrdlaw.com for more information.
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