SAN FRANCISCO, Feb. 22, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges C3.ai, Inc. (NYSE: AI) investors with significant losses to submit your losses now. The firm is investigating possible violations of the securities laws.
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C3.ai, Inc. (AI) Investigation:
The investigation focuses on C3.ai’s and senior management’s statements about the company’s customers.
More specifically, in the past C3.ai and its senior management have touted relationships with Baker Hughes and others, claiming those relationships support investor expectations of future revenue visibility.
But, on Feb. 16, 2022, analyst Spruce Point Capital Management published a report entitled “Real Intelligence: Sell C3.ai” concluding the price of C3.ai shares present a 40% - 50% downside risk.
Spruce Point found multiple instances of claims made by C3.ai that it concluded “appear to be exaggerated, or don’t reconcile with our research findings.” Among them, Spruce Point alleged, “[g]iven the shifty customer definition disclosures, we see a high probability C3 is overstating paying and active customers.”
Spruce Point also focused on C3.ai’s accounting related to unbilled receivables and concluded “[s]uspiciously, the rise in unbilled receivables may have given C3.ai a ’cookie jar’ needed to deliver quarterly revenues above the high end of its guidance.”
The price of C3.ai shares plunged over 9% on Feb. 16, 2022 following Spruce Point’s report.
“We’re focused on investors’ losses and whether C3.ai lied about its paying and active customers and also possibly about its receivables and revenue recognition practices comporting with accounting rules,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in C3.ai, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding C3.ai should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AI@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895
