Xiao-I Corporation (NASDAQ: AIXI)

This lawsuit is for anyone who acquired securities in Xiao-I Corporation (NASDAQ: AIXI) from March 9, 2023 through July 12, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, in the Prospectus to the Company’s IPO, and throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by among other things, telling investors that the Company complied with GAAP in the preparation of the Company’s financial statements when Company did not comply with GAAP in preparing its financial statements.

On September 25, 2023, Xiao-I issued a press release announcing inter alia, a net loss of $18.8 million for the first half of 2023, and revealing that its “[t]otal operating expenses” increased 355% year over year, and R&D expenses “grew by 708% year over year.” On this news, Xiao-I’s ADS price fell $2.70, or 14.22%, to close at $16.29 per ADS on September 25, 2023. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on April 30, 2024, Xiao-I revealed, inter alia, FY 2023 revenues of $59.2 million as well as a net loss of $27 million, noting “[R&D] expenses, [] grew by 118.3% year over year.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on July 15, 2024, Xiao-I announced it “received a notification letter dated July 11, 2024 (the ‘Deficiency Letter’) from the Listing Qualifications Department of [t]he [NASDAQ], indicating that the Company is no longer in compliance with the minimum bid price requirement[.]” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Xiao-I Corporation (NASDAQ: AIXI) from March 9, 2023 through July 12, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.