SAN DIEGO--(BUSINESS WIRE)--$AI #IPO--The Class: Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired C3,ai, Inc. (NYSE: AI): (a) common stock pursuant to the Company's December 9, 2020 initial public offering ("IPO"); or (b) securities between December 9, 2020 and February 15, 2022, for violations of the Securities Exchange Act of 1934. C3.ai operates as an enterprise artificial intelligence ("AI") software company.
If you would like more information about C3.ai, Inc.'s misconduct, click here.
What is this Case About: C3.ai, Inc. (AI) Makes False and Misleading Statements in its Offering Documents in Support of its IPO
According to the complaint, C3.ai went public on December 9, 2020, offering shares at $42.00 per share. Defendants - in the Offering Documents in support of the Company's IPO and during the class period - touted the Company's relationships with technology leaders, including Baker Hughes, and its "large and rapidly growing [total addressable] market," among other things.
However, these statements were false and misleading. Specifically, defendants and the Offering Documents failed to disclose that: (i) C3.ai's partnership with Baker Hughes was deteriorating and that the Company employed a flawed accounting methodology to conceal the deterioration of the partnership, (ii) C3.ai faced challenges in product adoption and significant salesforce turnover; and (iii) C3.ai overstated, inter alia, the extent of its investment in technology, description of its customers, its total addressable market, the pace of its growth, and the scale of alliances with its major business partners.
On February 22, 2022, Spruce Point Capital Management issued a report alleging it had uncovered "[e]vidence of a severely challenged partnership with Baker Hughes, a related party and C3ai's largest customer" and "[s]igns of problematic financial reporting and accounting regarding the Baker Hughes joint venture and a revolving door in C3.ai's Chief Financial Officer position." The report further detailed, "[c]hallenges in product adoption and significant salesforce turnover make it unlikely that C3.ai will meet aggressive analyst estimates," as well as "[w]orrisome corporate governance practices and insider enrichment." On this news, C3.ai's stock price fell $1.01 per share, or almost 4%, on February 16, 2022. The stock trades significantly below the offering price of $42.00 per share.
Next Steps: If you acquired shares of C3.ai, Inc. (AI) pursuant to the Company's IPO or between December 9, 2020 and February 15, 2022, you have until May 3, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Informat5/3/22ion Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against C3.ai, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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Contacts
Aaron Dumas
Robbins LLP
5040 Shoreham Place
San Diego, CA 92122
adumas@robbinsllp.com
(800) 350-6003
www.robbinsllp.com
