NEW YORK, March 01, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Innodata, Inc. (“Innodata” or the “Company”) (NASDAQ:INOD) securities during the period of May 9, 2019 through February 14, 2024 inclusive (“the Class Period”). Investors have until April 22, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On February 15, 2024, Wolfpack Research published a report alleging that Innodata misrepresented the nature and extent of its business and operations. The Wolfpack Report revealed that Goldengate, the centerpiece of Innodata’s reported AI technology, was not as large of an investment as the Company represented. The research firm criticized the Company for its alleged overemphasis on being an AI pioneer, pointing out that Innodata’s total investment in R&D over the past five years was only $4.4 million, with less spent on R&D in 2023 than what was spent on marketing its “AI” technology. The Wolfpack Report also revealed that Innodata misrepresented the extent to which offshore workers, not AI, were performing the bulk of Innodata’s work. On this news, the price of Innodata shares 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.
The lawsuit alleges that Innodata 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 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.
If you purchased or otherwise acquired Innodata securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
