C3.ai, Inc. (AI) Securities Class Action Lawsuit Update [October 6, 2025]

Introduction to C3.ai, Inc. (AI) Securities Class Action Lawsuit

A securities fraud class action has been filed against C3.ai, Inc. (NYSE: AI) in the U.S. District Court for the Northern District of California. The case covers investors who bought C3 AI securities between February 26, 2025 and August 8, 2025, inclusive. Investors allege the company and its senior leaders misrepresented the Chief Executive Officer's health and continued engagement, along with revenue expectations for the first quarter and full fiscal year 2026. On August 8, 2025, C3 AI issued preliminary results far below guidance and the CEO acknowledged health issues, including multiple hospitalizations and vision impairment, that limited his participation in the sales process. Following these revelations, the stock dropped about 25.58% by August 11, 2025, erasing significant market value in a single trading day.

C3.ai, Inc. (AI) Securities Lawsuit Case Details

Case Name: Liggett Sr. v. C3.ai, Inc., et al.
Case No.: 3:25-cv-07129
Jurisdiction: U.S. District Court, Northern District of California
Filed on: August 22, 2025

C3.ai, Inc. (AI) Company Profile

C3 AI is a global artificial intelligence application software company. Its C3 agentic AI platform enables customers to design, develop, deploy, and operate enterprise AI applications for industry and government use cases.

C3.ai, Inc. (AI) Securities Lawsuit Class Period

February 26, 2025–August 8, 2025

All investors who purchased or otherwise acquired C3 AI securities between February 26, 2025 and August 8, 2025, inclusive, are within the putative class.

Allegations in the C3.ai, Inc. (AI) Securities Class Action Lawsuit

The lawsuit targets C3.AI, Inc., its Founder and Chief Executive Officer Thomas M. Siebel, and Senior Vice President and Chief Financial Officer Hitesh Lath. According to the complaint, defendants assured investors that the CEO's health allowed him to effectively conduct his role and represented that the company could perform as expected, while providing revenue guidance for the first quarter and full fiscal year 2026.

On February 26, 2025, during an earnings call, Siebel told investors he was "fully engaged" and that his "health is excellent," signaling uninterrupted leadership. By May 28, 2025, on another earnings call, Lath issued specific guidance: $100 million to $109 million of revenue for the first quarter of fiscal 2026 and $447.5 million to $484.5 million for the full year. That same day, Siebel acknowledged he had been slowed and had worked from home for a period, but emphasized recovery and imminent travel, while also touting strong market growth and the company's ecosystem efforts to meet demand for enterprise AI applications.

In July 2025, the company reiterated the CEO's continued engagement. In a July 24, 2025 press release, Siebel stated he would remain fully engaged as CEO until a successor was appointed and then continue as Executive Chairman focused on strategy, product innovation, and strategic partner and customer relationships.

Behind these statements, investors allege a different reality. The complaint contends Siebel had not sufficiently recovered to operate at prior capacity; his health was significantly impacting the company's ability to close deals; management was unable or ineffectual at minimizing that impact; and, as a result, C3 AI could not execute on its stated growth and profit potential.

The Truth Emerges

On August 8, 2025, C3 AI announced preliminary results for the first quarter of fiscal 2026. C3 AI issued a press release with preliminary first-quarter results showing total revenue of $70.2 million to $70.4 million—far below the previously issued $100–$109 million guidance. Management called the quarter's sales results "completely unacceptable" and announced a restructuring of the sales and services organization with new leadership to restore growth and customer success.

That same day, a second press release included Siebel's admission that, over the prior six months, he had multiple hospitalizations and vision impairment. He stated these health issues prevented him from participating in the sales process as actively as before and, with hindsight, that his active involvement may have had more impact than he previously thought. These disclosures contradicted earlier assurances about his health and were inconsistent with the previously issued revenue guidance.

Market Reaction

Investors and analysts reacted immediately. From a closing price of $22.13 per share on August 8, 2025, C3 AI's stock fell to $16.47 per share on August 11, 2025—about a 25.58% decline in a single trading day. The drop followed the preliminary results and admissions released on August 8.

Next Steps

• Submissions for lead plaintiff are due on October 21, 2025. 
• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.
• The Court will then consider motion for class certification.
• The Court will later consider a Motion to Dismiss.

To learn if you are eligible for recovery under the AI securities class action lawsuit, visit the case submission page here. 

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.