NEW YORK, Could 06, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally acknowledged shareholder rights legislation agency, is investigating potential claims towards Innodata Inc. (NASDAQ: INOD) on behalf of long-term stockholders following a category motion criticism that was filed towards Innodata on February 21, 2024 with a Class Interval from Could 9, 2019 to February 14, 2024. Our investigation issues whether or not the board of administrators of Innodata have breached their fiduciary duties to the corporate.
The lawsuit alleges that on February 15, 2024, Wolfpack Analysis revealed a report revealing that Innodata misrepresented the character and extent of its enterprise and operations. The Wolfpack Report confirmed that Innodata’s AI is actually smoke and mirrors and that the Firm’s advertising claims are like placing lipstick on a pig. Whereas the Defendants touted Innodata’s standing as an AI pioneer, different corporations had been solely hiring Innodata for reasonable labor and its operations had been powered by hundreds of low-wage offshore employees, not proprietary AI know-how. Innodata additionally stopped disclosing its Analysis and Growth spend after the primary quarter of 2021. The Wolfpack Report highlighted that Innodata’s complete R&D funding over the previous 5 years was solely $4.4 million, with even much less allotted to R&D in 2023 than what was spent on selling its AI know-how via press releases.
All through the Class Interval, the criticism alleges Defendants made false and/or deceptive statements, in addition to didn’t disclose materials info, together with that Innodata: (1) didn’t have a viable AI know-how; (2) its Goldengate AI platform is a rudimentary software program developed by only a handful of staff; (3) it was not going to make the most of AI to any important diploma for brand spanking new Silicon Valley contracts; (4) it was not successfully investing in analysis and growth for AI; and (5) based mostly on the foregoing, Defendants lacked an affordable foundation for his or her optimistic statements about Innodata’s AI enterprise and growth and associated monetary outcomes, development, and prospects.
On this information, the worth of Innodata frequent inventory declined by $3.74 per share, or roughly 30.5%, on February 15, 2024.
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In case you are a long-term stockholder of Innodata, have data, want to study extra about these claims, or have any questions regarding this announcement or your rights or pursuits with respect to those issues, please contact Brandon Walker or Marion Passmore by e mail at [email protected], by phone at (212) 355-4648, or by filling out this contact kind. There is no such thing as a price or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally acknowledged legislation agency with places of work in New York, California, and South Carolina. The agency represents particular person and institutional buyers in industrial, securities, spinoff, and different complicated litigation in state and federal courts throughout the nation. For extra details about the agency, please go to www.bespc.com. Legal professional promoting. Prior outcomes don’t assure comparable outcomes.
Contact Data:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com