Oct 20, 2024 | ONGOING DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Xiao-I Corporation Investors | NDAQ:AIXI

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who suffered losses of more than $50,000 in Xiao-I to contact him directly to discuss their options

If you suffered losses of more than $50,000 Xiao I as a result of the purchase of (a) Xiao-I American Depository Shares (ADSs) issued in connection with the Company's initial public offering on or about March 9, 2023, and/or (b) Xiao-I securities between March 9, 2023 . March 2023 and July 12, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310).

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New York, New York–(Newsfile Corp. – October 20, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Xiao-I Corporation (“Xiao-I” or the “Company”) (NASDAQ: AIXI) and reminds investors of this Deadline: December 16, 2024 to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As further discussed below, the complaint alleges that the Company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose that (1) Defendants' true downplayed the extent and severity of the risks faced by Xiao-I due to the failure of some Chinese shareholders to comply with Circular 37 on registration, including the Company's inability to use the issue proceeds for intended business purposes; (2) Xiao-I failed to comply with GAAP in preparing its financial statements; (3) Defendants overstated Xiao-I's efforts to correct material weaknesses in the Company's financial controls; (4) Xiao-I had to incur significant research and development costs to compete effectively in the AI ​​industry. (5) Xiao-I downplayed the significant adverse impact such expenditures would have on the Company's business and financial results; (6) Accordingly, Xiao-I overstated its AI capabilities, R&D resources and overall competitiveness in the AI ​​market; (7) As a result of the foregoing, there was a substantial likelihood that Xiao-I would not comply with NASDAQ's minimum bid price requirement; and (8) as a result, defendants' offering documents and public statements throughout the Class Period were materially false and/or misleading and contained no information contained therein.

On or about March 8, 2023, Xiao-I launched its initial public offering (IPO), selling 5.7 million American Depositary Shares (ADSs) at $6.80 each. Since the IPO, the price of Xiao-I's ADSs has fallen significantly, resulting in losses for investors.

On August 10, 2023, Xiao-I Corporation filed its amended annual report on Form 10-K/A with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2022. In the amended annual report, Xiao-I disclosed that “if any changes to the laws and regulations of the People's Republic of China or the internal control policies of the Bank of Ningbo (Zhizhen Artificial Technology (Shanghai) Company Limited, a subsidiary of the Company) arise in the future, then.” “The transfer of funds from abroad to your capital account at the Bank of Ningbo may be restricted.”

On this news, the price of Xiao-I American Depositary Shares (“ADSs”) fell $0.93 per ADS, or 11.56%, to close at $7.11 on August 11, 2023.

On July 15, 2024, Xiao-I issued a press release announcing that it “received a notification letter dated July 11, 2024 (the 'Deficiency Letter') from the Listing Qualifications Department of

On this news, Xiao-I ADS price fell by 2.28% to close at approximately $0.67 per ADS on July 15, 2024.

The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, who is appropriate and typical of the class, and who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may request the Court to serve as lead plaintiff through counsel of their choice, or may elect to take no action and remain an absent class member. Your ability to share in any recovery will not be affected by the decision to serve as lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information about Xiao-I's conduct to contact the company, including whistleblowers, former employees, shareholders and others.

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Lawyer advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to future matters. We welcome the opportunity to discuss your individual case. All communications will be treated confidentially.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227138