If you suffered losses exceeding $50,000 investing in Innodata stock or options between May 9, 2019 and February 14, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/INOD.
There is no cost or obligation to you.
NEW YORK, Feb. 23, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Innodata Inc. (“Innodata” or the “Company”) (NASDAQ: INOD) and reminds investors of the April 22, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) did not have a viable AI technology; (2) its Goldengate AI platform is a rudimentary software developed by just a handful of employees; (3) it was not going to utilize AI to any significant degree for new Silicon Valley contracts; (4) it was not effectively investing in research and development for AI; and (5) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about Innodata’s AI business and development and related financial results, growth, and prospects.
The lawsuit alleges that on February 15, 2024, Wolfpack Research published a report revealing that Innodata misrepresented the nature and extent of its business and operations. The Wolfpack Report showed that Innodata’s AI is really “smoke and mirrors” and that the Company’s marketing claims are like “putting lipstick on a pig.” While the Defendants touted Innodata’s status as an AI pioneer, other companies were only hiring Innodata for cheap labor and its operations were powered by thousands of low-wage offshore workers, not proprietary AI technology. Innodata also stopped disclosing its Research and Development spend after the first quarter of 2021. The Wolfpack Report highlighted that Innodata’s total R&D investment over the past five years was only $4.4 million, with even less allocated to R&D in 2023 than what was spent on promoting its “AI” technology through press releases.
On this news, the price of Innodata common stock declined by $3.74 per share, or approximately 30.5%, on February 15, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Innodata’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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