C3.ai, Inc. - AI Securities Fraud Class Action

C3.ai investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than May 3, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired C3.ai, Inc. (“C3.ai”) (NYSE: AI): (1) Class A common stock pursuant and/or traceable to the Offering Documents (defined below) issued in connection with the C3.ai’s initial public offering conducted on December 9, 2020 (the “IPO” or “Offering”); and/or (2) securities between December 9, 2020 and February 15, 2022, both dates inclusive (the “Class Period”).

Case Background:
C3.ai operates as an enterprise artificial intelligence (“AI”) software company. It offers a variety of software-as-a-service applications for enterprises and software solutions and integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market segments. C3.ai also purports to have strategic partnerships with Baker Hughes related to oil and gas markets; FIS related to financial services markets; Raytheon; and AWS, Intel, and Microsoft.

On November 13, 2020, C3.ai filed a registration statement on a Form S-1 in connection with the IPO, which, after several amendments, was declared effective on December 8, 2020 (the “Registration Statement”). On December 9, 2020, pursuant to the Registration Statement, C3.ai’s Class A common stock began publicly trading. That same day, C3.ai filed a prospectus on a Form 424B4 in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, collectively with the Registration Statement, the “Offering Documents”). Pursuant to the Offering Documents, C3.ai issued 15.5 million shares of its Class A common stock to the public at the Offering price of $42.00 per share for approximate proceeds to C3.ai of $610 million after applicable underwriting discounts and commissions. The complaint alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading.

The truth was revealed on February 16, 2022, during pre-market hours, when Spruce Point Capital Management (“Spruce Point”) issued a report and strong sell research opinion regarding C3.ai. Spruce Point alleged that it had uncovered, inter alia, “[e]vidence of a severely challenged partnership with Baker Hughes, a related-party and C3.ai’s largest customer”; “[s]igns of problematic financial reporting and accounting regarding the Baker Hughes joint venture and a revolving door in C3.ai’s Chief Financial Officer position”; that “[c]hallenges in product adoption and significant salesforce turnover make it unlikely that C3.ai will meet aggressive analyst estimates”; “[e]vidence of exaggerated or irreconcilable claims made by C3.ai[,]” including  numerous discrepancies” regarding “the value of and cumulative investment made by C3.ai in its technology, description of its customers, its total addressable market (‘TAM’), the pace of its market growth and the scale of alliances with companies such as Microsoft, Hewlett Packard Enterprises, Google Cloud, Intel and Amazon Web Services”; and “[w]orrisome corporate governance practices and insider enrichment.”  Following this news, C3.ai’s stock price fell $1.01, or 3.39%, to close at $24.70 per share on February 16, 2022.  As of the date the initial complaint was filed, C3.ai Class A common stock was trading below the $42.00 per share IPO price.

The complaint alleges that in the Offering Documents and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) C3.ai’s partnership with Baker Hughes was deteriorating; (2) C3.ai was employing a flawed accounting methodology to conceal the deterioration of its Baker Hughes partnership; (3) C3.ai faced challenges in product adoption and significant salesforce turnover; (4) C3.ai overstated, inter alia, the extent of its investment in technology, description of its customers, its TAM, the pace of its market growth, and the scale of alliances with its major business partners; and (5) as a result, C3.ai’s public statements were materially false and misleading at all relevant times.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  James Maro, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.