Class Action Lawsuit Filed Against iLearningEngines Amid Revenue Allegations

Gibbs Law Group has alerted investors about a class action lawsuit concerning iLearningEngines, Inc. AILE. This lawsuit pertains to shares bought or acquired between April 22, 2024, and August 28, 2024. In a shocking turn of events, the company’s stock fell over 54% during intraday trading on August 29, 2024, after Hindenburg Research issued a report claiming that “the majority of iLearningEngines’ revenue doesn’t exist.” The report also described a connection with a secretive entity dubbed “Technology Partner,” suggesting it may have been used to distort the company’s financial records.

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Details of the iLearningEngines Lawsuit

On August 29, 2024, Hindenburg Research published a report making serious accusations against iLearningEngines. It claimed that “nearly all” of the company’s revenue and expenses were processed through an undisclosed related party, the mentioned “Technology Partner.” Importantly, the report stated that a large portion of iLearningEngines’ reported revenue was fictitious. For instance, the firm asserted an annual revenue run rate of $216 million for its Indian market; however, the actual figures from its only Indian subsidiary were roughly 99.4% lower than what iLearningEngines claimed. This discrepancy raises red flags regarding the firm’s actual business activity.

The lawsuit maintains that throughout the relevant period, iLearningEngines misled investors with false or deceptive statements. Moreover, it is alleged that the company neglected to reveal crucial negative information about its operations and business outlook.

About Gibbs Law Group

Gibbs Law Group is a firm that has represented investors across the nation in cases involving securities litigation. Their focus is on addressing harmful corporate governance, breaches of fiduciary duty, and proxy violations. Notably, they have recovered over a billion dollars for clients against some of the largest corporations, and their attorneys have earned multiple accolades, including recognition as “Best Lawyers in America” and “Top Plaintiff Lawyers in California.”

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