NEW YORK, April 21, 2022 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, reminds investors that a securities class action lawsuit has been filed against C3.ai, Inc. (“C3.ai” or the “Company”) (NYSE: AI) and certain other defendants, alleging violations of federal securities laws. If you purchased shares of C3.ai between December 9, 2020 and February 15, 2022, you are encouraged to contact attorney Joe Pettigrew for additional information at (844) 818-6982, or at jpettigrew@scott-scott.com. The lead plaintiff deadline is May 3, 2022.
C3.ai is an artificial intelligence software company that offers software-as-a-service applications for enterprises internationally. It claims to have strategic partnerships with Baker Hughes related to oil and gas markets; FIS related to financial services markets; Raytheon; and AWS, Intel, and Microsoft. The Company held its initial public offering (“IPO”) in December 2020, selling shares to the public at an offering price of $42 per share.
The lawsuit alleges the Company’s IPO’s offering documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with all SEC rules and regulations. The lawsuit further alleges that the IPO’s offering documents and other statements during the Class period included false and/or misleading statements and/or failed to disclose that: (i) C3.ai’s partnership with Baker Hughes was deteriorating; (ii) C3.ai was employing a flawed accounting methodology to conceal the deterioration of its Baker Hughes partnership; (iii) C3.ai faced challenges in product adoption and significant salesforce turnover; (iv) C3.ai overstated, among other things, the extent of its investment in technology, description of its customers, its total addressable market (“TAM”), the pace of its market growth, and the scale of alliances with its major business partners; and (v) as a result, C3.ai’s public statements were materially false and misleading at all relevant times.
On February 16, 2022, Spruce Point Capital Management, LLC (“Spruce Point”) published a short-seller report on C3.ai. In the report, Spruce Point revealed that it found “multiple instances of claims made by C3.ai that appear to be exaggerated, or don’t reconcile with our research findings.” Specifically, the report indicates, among other things, that given shifty customer definition disclosures, there is a high probability that C3.ai is overstating its paying and active customer Inflated Technology Value. Spruce Point also found “[e]vidence of a severely challenged partnership with Baker Hughes, a related-party and C3.ai’s largest customer”; “[s]igns of problematic financial reporting and accounting regarding the Baker Hughes joint venture and a revolving door in C3.ai’s Chief Financial Officer position”; that “[c]hallenges in product adoption and significant salesforce turnover make it unlikely that C3.ai will meet aggressive analyst estimates”; “[e]vidence of exaggerated or irreconcilable claims made by C3.ai,” including “numerous discrepancies” regarding “the value of and cumulative investment made by C3.ai in its technology, description of its customers, its [TAM], the pace of its market growth and the scale of alliances with companies such as Microsoft, Hewlett Packard Enterprises, Google Cloud, Intel and Amazon Web Services”; and “[w]orrisome corporate governance practices and insider enrichment.”
Following this news, C3.ai’s stock price fell $1.01 per share, or 3.93%, to close at $24.70 per share on February 16, 2022.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is May 3, 2022. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased C3.ai stock between December 9, 2020 and February 15, 2022, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or jpettigrew@scott-scott.com.
About Scott+Scott
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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CONTACT:
Joe Pettigrew
Scott+Scott Attorneys at Law LLP
600 W. Broadway, Suite 3300, San Diego, CA 92101
(844) 818-6982
jpettigrew@scott-scott.com
