NEW YORK, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Maryland on behalf of all persons or entities who purchased or otherwise acquired iLearningEngines, Inc. (“iLearning” or the “Company”) (NASDAQ: AILE) securities between April 22, 2024 and August 28, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that Defendants made misrepresentations concerning the source of the Company’s reported revenue and expenses, chiefly that iLearning’s revenues were wrongly achieved through an undisclosed related party.
On August 29, 2024, Hindenburg Research issued a report on the Company entitled, “iLearningEngines: An Artificial Intelligence SPAC With Artificial Partners And Artificial Revenue.” In this report, Hindenburg stated that it suspected that the “company’s revenue and expenses are largely fake.” The Hindenburg report further stated that nearly all of the Company’s revenue and expenses “seem to be run through an undisclosed related party, an unnamed ‘Technology Partner.’” Further, Hindenburg stated its belief that iLearning Engines had “lied to the SEC” when the company told the SEC that “Technology Partner” was not a related party.
On this news, the Company’s stock fell $1.70 per share, or 53.3%, to close at $1.49 per share on August 29, 2024.
Investors who purchased or otherwise acquired shares of iLearning should contact the Firm prior to the December 6, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
