SAN DIEGO, April 03, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of all those who purchased or otherwise acquired Innodata Inc. (NASDAQ:INOD) common stock between May 9, 2019 and February 14, 2024. Innodata is a global data engineering company that purports to be delivering the promise of AI to many of the world's most prestigious companies.
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The Allegations: According to the complaint, during the class period, defendants failed to disclose that Innodata: (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; and (4) it was not effectively investing in research and development for AI.
Plaintiffs allege 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 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. The Company also stopped disclosing its Research and Development (R&D) spend after the first quarter of 2021. The Wolfpack Report highlighted that Innodata's total investment in R&D 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%, from $12.26 per share on February 14, 2024 to close at $8.52 on February 15, 2024.
What Now: You may be eligible to participate in the class action against Innodata Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by April 22, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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