iLearningEngines Inc. executives faked the education software company’s revenue by relying on an undisclosed related party, causing a record stock drop on a short-seller report about the relationship and exposing it to a proposed class action, a shareholder derivative suit said.
The artificial intelligence platform reported $138 million in revenue from its key Indian market in 2022—but really it was just over $853,000, 99% less than iLearning reported, said the complaint filed in the US District Court for the District of Maryland on Monday.
Short seller Hindenburg Research said on Aug. 29 iLearning used its relationship with the undisclosed ...
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