LOS ANGELES, March 25, 2022 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming May 3, 2022 deadline to file a lead plaintiff motion in the class action 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”).
If you suffered a loss on your C3.ai investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/c3ai-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
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.
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If you purchased or otherwise acquired C3.ai Class A common stock pursuant and/or traceable to the IPO and/or securities during the Class Period, you may move the Court no later than May 3, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
