Law firm Hagens Berman is urging investors who experienced significant losses in Innodata Inc. (NASDAQ: INOD) to submit their claims before the lead plaintiff deadline on April 22, 2024. The litigation challenges Innodata’s claims about its AI technology and Goldengate platform, alleging that the company misrepresented and failed to disclose important information regarding its AI capabilities.
The complaint asserts that Innodata did not possess a viable AI technology and that its Goldengate AI platform was a basic software developed by only a few employees. It further claims that the company was not going to utilize AI to a significant extent for new Silicon Valley contracts and was not effectively investing in research and development for AI.
In February 2024, activist short seller Wolfpack Research published a report exposing the “smoke and mirrors” surrounding Innodata’s AI technology. The report concluded that Innodata is primarily a manual data-entry business driven by offshore labor, rather than innovation. The report also raised doubts about Goldengate, stating that the software was developed by only a handful of employees and did not produce satisfactory results in customer trials.
Following the publication of the report, the price of Innodata shares plummeted by 30% on February 15, 2024. Hagens Berman is currently investigating whether Innodata made false and misleading claims about its AI technology.
Investors who suffered losses in Innodata or have information that may assist in the investigation are encouraged to submit their claims to Hagens Berman. Whistleblowers with non-public information about Innodata are also encouraged to come forward to assist in the investigation or take advantage of the SEC Whistleblower program.
Hagens Berman is a global plaintiffs’ rights complex litigation law firm that focuses on corporate accountability through class-action law. The firm represents investors, whistleblowers, workers, consumers, and others harmed by corporate negligence and fraud. For more information, visit hbsslaw.com.
Innodata Inc. (NASDAQ: INOD) operates in the technology industry, specifically in the field of artificial intelligence (AI). The company’s AI technology and Goldengate platform have been central to its business strategy. AI technology has gained significant prominence in recent years, with various industries utilizing its capabilities to improve efficiency and productivity.
Market forecasts for the AI industry suggest strong growth potential. According to Grand View Research, the global AI market size is expected to reach $733.7 billion by 2027, growing at a compound annual growth rate (CAGR) of 42.8% from 2020 to 2027. The increasing adoption of AI in sectors such as healthcare, finance, retail, and manufacturing is driving this growth.
However, the allegations made against Innodata regarding the misrepresentation of its AI technology raise concerns about the company’s credibility in the industry. The complaint asserts that Innodata did not possess a viable AI technology and that its Goldengate AI platform was a basic software developed by only a few employees. This implies that the company’s claims about its AI capabilities may have been exaggerated or misleading.
The report published by activist short seller Wolfpack Research further adds to these concerns. The report suggests that Innodata primarily relies on manual data-entry processes driven by offshore labor, rather than being a true innovator in the AI industry. It also casts doubt on the effectiveness of the Goldengate software.
These revelations have had a significant impact on Innodata’s stock price, with a 30% decline observed on February 15, 2024, following the publication of the report. This highlights the importance of accurate and transparent representation of AI capabilities in the industry.
Investors who have suffered losses in Innodata as a result of these allegations may have legal recourse. Law firm Hagens Berman specializes in complex litigation and is urging affected investors to submit their claims before the lead plaintiff deadline on April 22, 2024. Hagens Berman is currently investigating whether Innodata made false and misleading claims about its AI technology, providing an opportunity for investors to seek justice.
Whistleblowers with non-public information about Innodata are also encouraged to come forward and assist in the investigation. They may also benefit from the SEC Whistleblower program, which rewards individuals who provide valuable information about possible securities violations.
For more information about Hagens Berman and its efforts to hold corporations accountable through class-action law, visit their website hbsslaw.com.