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Published December 6, 2024
In July, the NASDAQ delisted Chinese AI company Xiao-I because it had become a junk stock. Now, angry shareholders are suing the tech company to recover some of their lost investment.
When Xiao-I launched its initial public offering in 2023, its executives should have known the company had problems. It wasn’t in compliance with Chinese foreign investment laws, it didn’t meet NASDAQ accounting requirements, and its AI model needed a lot more work. Xiao-I didn’t tell investors about any of those issues, and investors were outraged when they learned the truth the hard way- when NASDAQ took the shares off the market for failing to meet even minimum quality requirements.
Some of those shareholders are now signing up for the class-action lawsuit.