KIND - Bragar Eagel & Squire P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Innodata Fox Factory and Nextdoor and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, March 04, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Innodata Inc. (NASDAQ:INOD), Fox Factory Holding Corp. (NASDAQ:FOXF), and Nextdoor Holdings, Inc. f/k/a Khosla Ventures Acquisition Co. II (NYSE:KIND). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Innodata Inc. (NASDAQ:INOD)
Class Period: May 9, 2019 - February 14, 2024
Lead Plaintiff Deadline: April 22, 2024
The lawsuit alleges that on February 15, 2024, Wolfpack Research published a report revealing that Innodata misrepresented the nature and extent of its business and operations. The Wolfpack Report showed that Innodata's AI is really "smoke and mirrors" and that the Company's marketing claims are like "putting lipstick on a pig." While the Defendants touted Innodata's status as an AI pioneer, other companies were only hiring Innodata for cheap labor and its operations were powered by thousands of low-wage offshore workers, not proprietary AI technology. Innodata also stopped disclosing its Research and Development spend after the first quarter of 2021. The Wolfpack Report highlighted that Innodata's total R&D investment over the past five years was only $4.4 million, with even less allocated to R&D in 2023 than what was spent on promoting its "AI" technology through press releases.
Throughout the Class Period, the complaint alleges Defendants made false and/or misleading statements, as well as failed to disclose material facts, including that Innodata: (1) did not have a viable AI technology; (2) its Goldengate AI platform is a rudimentary software developed by just a handful of employees; (3) it was not going to utilize AI to any significant degree for new Silicon Valley contracts; (4) it was not effectively investing in research and development for AI; and (5) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about Innodata's AI business and development and related financial results, growth, and prospects.
On this news, the price of Innodata common stock declined by $3.74 per share, or approximately 30.5%, ...