Kirby McInerney LLP Announces Filing of Securities Report

NEW YORK, April 07, 2022 (GLOBE NEWSWIRE) — The law firm Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired C3.ai, Inc. (“C3.ai” or the “Company”) (NYSE:AI) : (a) ordinary shares pursuant to and/or traceable to the Company’s initial public offering (the “IPO” or the “Offer”) completed on or about December 9, 2020; and/or (b) securities between December 9, 2020 and February 15, 2022 inclusive (the “Class Period”). Investors have until May 3, 2022 to ask the Court to be named lead plaintiff in the lawsuit.

C3.ai operates as an enterprise artificial intelligence (“AI”) software company.

Consistent with the IPO, C3.ai issued 15.5 million shares to the public at a price of $42.00 per share for approximate proceeds to the company of $610 million.

On February 16, 2022, Spruce Point Capital Management released a report in which it claimed to have discovered, among others“[e]evidence of a strongly contested partnership with Baker Hughes, a related party and C3.ai’s largest customer”; “[s]signs of problematic financial reporting and accounting for the Baker Hughes joint venture and a revolving door in C3.ai’s CFO position”; that “[c]product adoption challenges and high sales force turnover make C3.ai unlikely to meet aggressive analyst estimates”; “[e]evidence of exaggerated or irreconcilable claims made by C3.ai[,]including “numerous discrepancies” regarding “the value and cumulative investment C3.ai has made in its technology, description of its customers, its total addressable market (“TAM”), the rate of growth of its market and the breadth of alliances with companies such as Microsoft, Hewlett Packard Enterprises, Google Cloud, Intel and Amazon Web Services”; and “[w]tedious corporate governance practices and insider enrichment. Accordingly, Spruce Point “conservatively estimates[d] 40% – 50% downside risk of C3.ai share price. On this news, C3.ai’s stock price fell $1.01 per share from $25.71 per share to close at $24.70 per share on February 16, 2022.

The lawsuit alleges that the offering documents were negligently prepared and, as a result, contained misrepresentations of material facts or failed to state other facts necessary for the statements made not to be misleading. The lawsuit further alleges that it failed to disclose that: (i) C3.ai’s partnership with Baker Hughes was deteriorating; (ii) C3.ai used faulty accounting methodology to conceal the deterioration of its partnership with Baker Hughes; (iii) C3.ai faced challenges with product adoption and high sales force turnover; (iv) the Company has overestimated, among othersthe extent of its investments in technology, the description of its customers, its total addressable market, the rate of growth of its market and the extent of alliances with its main commercial partners.

If you have purchased or otherwise acquired C3.ai titles, have information, or would like to know more about this survey, please contact Thomas W. Elrod of Kirby McInerney LLP by email to [email protected]or by completing this contact form, to discuss your rights or interests with respect to these matters at no cost to you.

Kirby McInerney LLP is a New York-based law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website: http://www.kmllp.com.

This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.

contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
https://www.kmllp.com
[email protected]

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