Case Summary

Innodata

NASDAQ: INOD

Case Details

  • DAgostino v. Innodata Inc. et al.
  • Class Period:May 9, 2019 - February 14, 2024
  • Date Filed:February 21, 2024
  • Jurisdiction:U.S. District Court, District of New Jersey
  • Docket Number: 2:24-cv-00971
  • Lead Plaintiff Deadline: April 22, 2024
Days Left to
Seek Plaintiff
0

Overview

A class action lawsuit has been filed against Innodata, Inc. (“Innodata” or the “Company”) (NASDAQ: INOD) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Innodata lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Innodata common stock between May 9, 2019 and February 14, 2024, both dates inclusive (the “Class Period”), and investors have until April 22, 2024 to seek appointment as lead plaintiff of the Innodata class action lawsuit.

Innodata is a global data engineering company that purports to be “delivering the promise of Artificial Intelligence (‘AI’) to many of the world’s most prestigious companies.”  The Company states that it provides AI-enabled software platforms and managed services for AI data collection and annotation, AI digital transformation, and industry-specific business processes.

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 (“R&D”) 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.

The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material facts, including 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; (4) it was not effectively investing in R&D for AI; and (5) that 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.  On this news, the price of Innodata common stock declined by $3.74 per share, or approximately 30.5%, on February 15, 2024.

*          *          *

If you purchased or otherwise acquired Innodata (NASDAQ: INOD) common stock between May 9, 2019 and February 14, 2024, both dates inclusive, and suffered substantial losses, 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 investors@dicellolevitt.com. 

Join This Action

Name(Required)
Address(Required)
Are you a current or former employee at the company?(Required)

Purchases

Purchases Buy Date Quantity Purchase Price per share or security Actions
       

Sales

Sale Type Sale Date Quantity Sale Price per share or security Actions
       

Upload Documents

Drop files here or
Accepted file types: xls, xlsx, doc, pdf, jpg, jpeg, Max. file size: 50 MB, Max. files: 5.