INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of C3.ai, Inc. (AI) Investors
BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors of C3.ai, Inc. (“C3.ai” or the “Company”) (NYSE: AI) who purchased or otherwise acquired: (a) Class A common stock pursuant and/or traceable to the December 2020 initial public offering (“IPO”); and/or (b) securities between December 9, 2020 and February 15, 2022, inclusive (the “Class Period”). C3.ai investors have until May 3, 2022 to file a lead plaintiff motion.
Investors suffering losses on their C3.ai investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
In December 2020, C3.ai conducted its IPO, issuing 15.5 million shares of Class A common stock at $42.00 per share.
On February 16, 2022, Spruce Point Capital Management published a report alleging that C3.ai has exhibited a “pattern of exaggerated business claims,” concluding that there is a high probability that C3 is overstating its numbers of paying and active customers and has exaggerated its total addressable market. Moreover, the report alleged that “there is a discrepancy in accounts receivables tied to Baker Hughes and a related increase in unbilled receivables, which suggest that C3.ai may be aggressively recognizing revenues from Baker Hughes.”
On this news, C3.ai’s stock fell $1.01, or 4%, to close at $24.70 per share on February 16, 2022, thereby injuring investors. By the commencement of the action, C3.ai’s stock was trading below the IPO price.
The complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) C3.ai’s partnership with Baker Hughes was deteriorating; (2) C3.ai was employing a flawed accounting methodology to conceal the deterioration of its Baker Hughes partnership; (3) C3.ai faced challenges in product adoption and significant salesforce turnover; (4) the Company overstated, inter alia, the extent of its investment in technology, description of its customers, its total addressable market, the pace of its market growth, and the scale of alliances with its major business partners; and (5) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
If you purchased C3.ai securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com