iLearningEngines (AILE) Forms Special Committee After Hindenburg Contends Revenues and Expenses ...
SAN FRANCISCO, Sept. 16, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges iLearningEngines, Inc. (NASDAQ: AILE) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.
On September 5, 2024, iLearningEngines announced that its board formed a special committee to investigate serious accusations against the company levied by Hindenburg Research on August 29, 2024. The results of the internal investigation are not yet available.
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Investigation Into iLearningEngines, Inc. (AILE):
iLearningEngines, which went public through a SPAC merger in April 2024, is now under investor scrutiny over the propriety of its disclosures of related party transactions and whether its financial statements were prepared in accordance with applicable accounting rules.
Hagens Berman, a leading shareholder rights firm, has commenced an investigation after the price of iLearningEngines shares tanked as much as 59% on August 29, 2024, coincident with Hindenburg Research’s report entitled “iLearningEngines: An Artificial Intelligence SPAC With Artificial Partners and Artificial Revenue.”
Hindenburg observed that, contrary to iLearningEngines’ “claims to be a fast growing and high margin ‘early pioneer in enterprise AI operating in the corporate and educational learning space[…] We suspect both the company’s revenue and expenses are largely fake.”
Hindenburg concluded that “[n]early all of the company’s revenue and expenses (~96% of revenue and ~100% of CoGS in 2022) seem to be run through an undisclosed related party, an unnamed ‘Technology Partner[].’” For 2023, Hindenburg estimated that over 92% of revenue and over 96% of CoGS were run through the “Technology Partner”. As to iLearningEngines’ India subsidiary business, Hindenburg estimates the company has overstated the subsidiary’s revenues for its fiscal year ending in March 2023 by over 99%.
Hindenburg said it unmasked the identity of “Technology Partner” as Experion Technologies, whose American contact is iLearningEngines’ CEO (Harish Chidambaran) and whose American address is also Chidambaran’s. Based on this, Hindenburg observed that representations to the SEC and to investors before the SPAC merger that “Technology Partner” was not a related party were lies.
“We are looking into whether iLearningEngines may have misled investors about its business prospects and its financial reporting,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in iLearningEngines and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the iLearningEngines investigation, read more »
Whistleblowers: Persons with non-public information regarding iLearningEngines should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AILE@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
