Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces Investigation of Xiao-I Corporation (AIXI) on Behalf of Investors

Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Xiao-I Corporation (“Xiao-I” or the “Company”) AIXI investors concerning the Company’s possible violations of the federal securities laws.

If you suffered a loss on your Xiao-I investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/Xiao-I-Corporation/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On or about March 9, 2023, Xiao-I conducted its IPO, issuing 5.7 million of its American depository shares (“ADSs”) to the public at the Offering price of $6.80 per ADS for gross proceeds of $38.76 million.

On September 25, 2023, Xiao-I issued a press release announcing inter alia, a net loss of $18.8 million for the first half of 2023, and revealing that its “[t]otal operating expenses” increased 355% year over year, and R&D expenses “grew by 708% year over year.” On this news, Xiao-I’s ADS price fell $2.70, or 14.22%, to close at $16.29 per ADS on September 25, 2023.

Then, on April 30, 2024, Xiao-I revealed, inter alia, FY 2023 revenues of $59.2 million as well as a net loss of $27 million, noting “[R&D] expenses, [] grew by 118.3% year over year.” On this news, Xiao-I’s ADS price fell $0.72, or 6.15%, to close at $10.98 per ADS on April 30, 2024.

Finally, on July 15, 2024, Xiao-I announced it “received a notification letter dated July 11, 2024 (the ‘Deficiency Letter’) from the Listing Qualifications Department of [t]he [NASDAQ], indicating that the Company is no longer in compliance with the minimum bid price requirement[.]” On this news, Xiao-I’s ADS price fell $0.13, or 2.28%, to close at $5.99 per ADS on July 15, 2024.

Whistleblower Notice: Persons with non-public information regarding Xiao-I should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email shareholders@glancylaw.com.

About GPM

Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward-looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.

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