Overview

A class action lawsuit has been filed against iLearningEngines, Inc. (“iLearningEngines” or the “Company”) (NASDAQ: AILE) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws.  The iLearningEngines class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired iLearningEngines securities between April 22, 2024, and August 28, 2024, both dates inclusive (the “Class Period”).  Investors have until December 6, 2024, to seek appointment as lead plaintiff in the iLearningEngines class action lawsuit.

iLearningEngines purports to be an “AI-powered learning automation” software company.  The iLearningEngines class action lawsuit alleges that on August 29, 2024, before the market opened, Hindenburg Research released a report titled “iLearningEngines: An Artificial Intelligence SPAC With Artificial Partners and Artificial Revenue.”  The report accused iLearningEngines of funneling nearly all of its 2022 and 2023 revenue and expenses through an undisclosed related party, referred to by the company as their “Technology Partner.”  Hindenburg alleged that iLearningEngines used this undisclosed relationship to artificially inflate its reported revenue and expenses, claiming that $138 million in revenue from the Indian market in 2022 was falsely reported, when the actual revenue was only about $853,471 – 99.4% less than what was claimed.

Following the report, the Company’s share price plummeted by $1.70, or 53.3%, closing at $1.49 on August 29, 2024, with unusually heavy trading volume.

Throughout the Class Period, Defendants made materially false or misleading statements and failed to disclose critical adverse facts about the Company’s business and operations.  Specifically, Defendants did not inform investors that the “Technology Partner” was a related party, that it was used to report largely fake revenue and expenses, and that as a result, the Company significantly overstated its revenue.  This misrepresentation made Defendants’ positive statements about iLearningEngines’ business and future prospects misleading.

As a consequence of these deceptive practices and the sharp decline in the Company’s stock price, Plaintiff and other members of the class have suffered substantial financial losses and damages.

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If you purchased or otherwise acquired iLearningEngines securities between April 22, 2024, and August 28, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as a lead plaintiff in the iLearningEngines class action lawsuit is December 6, 2024.