Innodata Inc. bested investor allegations that the data engineering company overhyped its artificial intelligence capabilities before a short seller accused the company of having “rudimentary” software.
The investor leading the case undercut his own allegations that Innodata lacked AI completely, Judge Jamel K. Semper said, dismissing the lawsuit Monday without prejudice, giving the plaintiff an opportunity to replead. Former employees acting as confidential witnesses admitted Innodata had at least one functional AI product.
Regardless, former employee testimony was vague and insufficiently detailed to plead Innodata and executives falsely touted its AI capabilities, the US District Court for the District of ...
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