Shares of iLearningEngines, Inc. (“iLearningEngines”) dropped 13% on September 5, 2024 after the company disclosed in a Form 8K filing the day prior that one of its board members had resigned, effective August 29, 2024. Previously, it had plunged over 54% in intraday trading on Thursday, August 29, 2024, following a Hindenburg report alleging that “the majority of iLearningEngines’ revenue doesn’t exist” and that its relationship with an undisclosed related party referred to as “Technology Partner” is “a conduit for falsifying its financials.” Gibbs Law Group is investigating a potential iLearningEngines, Inc. (NASDAQ: AILE) Securities Class Action Lawsuit on behalf of shareholders who lost money in iLearningEngines, Inc.
What Should iLearningEngines, Inc.Investors Do?
If you invested in iLearningEngines, Inc., visit our website by clicking here, or call us toll-free at (888) 410-2925 to get more information and discuss how you may be able to recover your losses. Our investigation concerns whether iLearningEngines, Inc. has violated federal securities laws by providing false or misleading statements to investors.
What is the iLearningEngines, Inc.Lawsuit Investigation About?
On September 4, 2024, after the market closed, iLearningEngines filed a Form 8-K disclosing that on August 28, 2024, Matthew Barger notified the company of his intention to resign from the board of directors of iLearningEngines and that his resignation was effective as of August 29, 2024.
Also on August 29, 2024, Hindenburg Research published a report claiming that “nearly all” of iLearningEngines’ revenue and expenses “seem to be run through an undisclosed related party, an unnamed ‘Technology Partner,’” and “the majority of iLearningEngines’ revenue doesn’t exist.”
The Hindenburg report states that iLearningEngines also has “no obvious industry presence, doesn’t name key customers or partners and does not appear to do the volume of business it claims.” For example, the company claims its Indian market has an annual revenue run rate of $216 million, but the amounts reported by its sole Indian subsidiary are actually around 99.4% less than what iLearningEngines purports, according to the Hindenburg report.
Following this news, shares of iLearningEngines plummeted over 54% in intraday trading on Thursday, August 29, 2024, causing significant harm to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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