Artificial intelligence software company, Innodata, along with its top officials, have been served a securities fraud class action complaint on Feb. 21 in New Jersey District Court. The complaint alleges that the defendants failed to disclose that the company has not developed viable AI technology, causing the company’s stock price to plummet.
The litigation case details, brought to attention by Law.com Radar, cite ‘Smoke and mirrors’ tactics by the company, suggesting misleading communication or non-disclosure regarding their AI capabilities that damaged the company’s investment credibility.
Investors and commercial lawyers keen on following the development of this case, fitting broadly into the arenas of AI and securities fraud, can stay updated through legal news sites including Law.com’s original article on the suit.