iLearningEngines Announces Further Response to Short Report
iLearningEngines (NASDAQ: AILE), an AI-powered learning and work automation company, has formed a Special Committee of independent directors to investigate allegations from a recent short-seller report. The committee has engaged Paul Hastings LLP for an independent investigation. Despite clean audit opinions from independent auditors, the company believes this investigation is in shareholders' best interests. The duration and outcome are uncertain, but updates will be provided when appropriate.
CEO Harish Chidambaran defended the company, stating that ILE has real products, contracts, and revenue. He expressed confidence in addressing the short-seller's allegations, which he described as containing misleading statements, speculations, and innuendos. The company aims to remain focused on executing its business plan while the investigation progresses.
iLearningEngines (NASDAQ: AILE), un'azienda che utilizza l'intelligenza artificiale per l'apprendimento e l'automazione del lavoro, ha formato un Comitato Speciale di amministratori indipendenti per indagare sulle accuse provenienti da un recente rapporto di un venditore allo scoperto. Il comitato ha incaricato Paul Hastings LLP di condurre un'indagine indipendente. Nonostante pareri di audit positivi da parte di revisori indipendenti, l'azienda ritiene che questa indagine sia nel miglior interesse degli azionisti. La durata e l'esito sono incerti, ma saranno forniti aggiornamenti quando appropriato.
Il CEO Harish Chidambaran ha difeso l'azienda, affermando che ILE ha prodotti reali, contratti e ricavi. Ha espresso fiducia nel rispondere alle accuse del venditore allo scoperto, che ha descritto come contenenti dichiarazioni fuorvianti, supposizioni e allusioni. L'azienda punta a rimanere concentrata sull'esecuzione del proprio piano aziendale mentre l'indagine prosegue.
iLearningEngines (NASDAQ: AILE), una empresa impulsada por inteligencia artificial dedicada al aprendizaje y la automatización del trabajo, ha formado un Comité Especial de directores independientes para investigar las acusaciones de un reciente informe de un vendedor a corto. El comité ha contratado a Paul Hastings LLP para realizar una investigación independiente. A pesar de las opiniones de auditoría limpias de auditores independientes, la empresa cree que esta investigación es en el mejor interés de los accionistas. La duración y el resultado son inciertos, pero se proporcionarán actualizaciones cuando sea apropiado.
El CEO Harish Chidambaran defendió a la empresa, afirmando que ILE tiene productos reales, contratos y ingresos. Expresó confianza al abordar las acusaciones del vendedor a corto, que describió como conteniendo declaraciones engañosas, especulaciones y insinuaciones. La empresa tiene como objetivo mantenerse enfocada en la ejecución de su plan de negocios mientras avanza la investigación.
iLearningEngines (NASDAQ: AILE)는 인공지능 기반의 학습 및 업무 자동화 회사로 최근 공매도자 보고서에서 제기된 주장에 대한 조사를 위해 독립 이사로 구성된 특별위원회를 구성했습니다. 이 위원회는 독립적인 조사를 위해 Paul Hastings LLP를 참여시켰습니다. 독립 감사인들로부터 긍정적인 감사 의견을 받았음에도 불구하고, 회사는 이 조사가 주주들에게 최선의 이익이라고 믿고 있습니다. 조사 기간과 결과는 불확실하지만, 적절할 때 업데이트가 제공될 것입니다.
CEO Harish Chidambaran은 ILE가 실제 제품, 계약 및 수익을 가지고 있다고 주장하며 회사를 방어했습니다. 그는 공매도자의 주장을 다루는 데 자신감을 나타냈고, 이를 오해를 불러일으키는 진술, 추측 및 암시로 설명했습니다. 회사는 조사가 진행되는 동안 사업 계획의 실행에 집중할 계획입니다.
iLearningEngines (NASDAQ: AILE), une entreprise d'apprentissage et d'automatisation du travail dotée d'intelligence artificielle, a formé un Comité Spécial de directeurs indépendants pour enquêter sur des allégations provenant d'un rapport récent d'un vendeur à découvert. Le comité a engagé Paul Hastings LLP pour mener une enquête indépendante. Malgré des avis d’audit positifs de la part d’auditeurs indépendants, l’entreprise estime que cette enquête est dans le meilleur intérêt des actionnaires. La durée et l’issue de l’enquête sont incertaines, mais des mises à jour seront fournies lorsque cela sera approprié.
Le PDG Harish Chidambaran a défendu l'entreprise, affirmant que ILE possède des produits réels, des contrats et des revenus. Il a exprimé sa confiance pour répondre aux allégations du vendeur à découvert, qu'il a décrites comme contenant des déclarations trompeuses, des spéculations et des allusions. L'entreprise vise à rester concentrée sur l'exécution de son plan d'affaires pendant que l’enquête se poursuit.
iLearningEngines (NASDAQ: AILE), ein KI-gestütztes Unternehmen für Lernen und Arbeitsautomatisierung, hat einen speziellen Ausschuss aus unabhängigen Direktoren gebildet, um Vorwürfe aus einem aktuellen Bericht eines Leerverkäufers zu untersuchen. Der Ausschuss hat Paul Hastings LLP für eine unabhängige Untersuchung beauftragt. Trotz klarer Prüfungsmeinungen von unabhängigen Prüfern glaubt das Unternehmen, dass diese Untersuchung im besten Interesse der Aktionäre ist. Die Dauer und das Ergebnis sind ungewiss, aber Updates werden gegebenenfalls bereitgestellt.
CEO Harish Chidambaran verteidigte das Unternehmen und erklärte, dass ILE echte Produkte, Verträge und Einnahmen hat. Er äußerte Zuversicht, die Vorwürfe des Leerverkäufers zu adressieren, die er als irreführende Aussagen, Spekulationen und Anspielungen bezeichnete. Das Unternehmen hat das Ziel, während der laufenden Untersuchung weiterhin auf die Umsetzung seines Geschäftsplans fokussiert zu bleiben.
- Formation of a Special Committee to investigate short-seller allegations
- Engagement of reputable legal counsel (Paul Hastings LLP) for an independent investigation
- CEO's assertion of real products, contracts, and revenue
- Uncertainty regarding the duration and outcome of the investigation
- Potential distraction from business operations due to short-seller allegations
Insights
The formation of a Special Committee by iLearningEngines' Board of Directors is a significant step in addressing the allegations raised by the short-seller report. This move demonstrates a commitment to transparency and due diligence. The engagement of Paul Hastings LLP, a reputable law firm, adds credibility to the investigation process. However, investors should note that such investigations can be time-consuming and may create uncertainty in the short term. The company's emphasis on clean audit opinions from independent auditors is positive, but it's important to remember that past audits don't guarantee future performance. The CEO's strong denial of the short-seller's claims is expected, but the market will likely remain cautious until the investigation concludes.
This development presents a mixed outlook for iLearningEngines. On one hand, the company's proactive response to the short-seller report shows good corporate governance. On the other, the need for an investigation suggests potential underlying issues that could impact financial performance. Investors should be aware that such investigations can lead to increased legal and administrative costs, potentially affecting short-term profitability. The lack of a clear timeline for the investigation's conclusion adds an element of uncertainty to the stock's near-term performance. While the CEO's confidence in the company's products and revenue is reassuring, the market typically reacts negatively to such uncertainties, which could lead to increased stock volatility in the coming weeks or months.
The allegations against iLearningEngines come at a important time for the AI industry, which is experiencing rapid growth and increased scrutiny. The company's position as a leader in AI-powered learning and work automation makes this investigation particularly significant for the sector. If the allegations are proven false, it could reinforce confidence in the AI industry's integrity. However, if substantiated, it might lead to increased regulatory attention and investor skepticism towards AI companies. The CEO's emphasis on "real products, contracts and revenue" is important, as it addresses a common concern in the AI sector about the tangibility and monetization of AI solutions. This situation underscores the need for AI companies to maintain transparent operations and robust financial reporting to build and maintain investor trust in this evolving industry.
BETHESDA, Md., Sept. 05, 2024 (GLOBE NEWSWIRE) -- iLearningEngines, Inc. (NASDAQ: AILE) (“iLearningEngines” or “ILE”) a leader in AI-powered learning and work automation for enterprises, today announced that the Company’s Board of Directors has formed a Special Committee consisting of independent directors to investigate allegations raised recently by a short-seller report. The Special Committee has engaged legal counsel from Paul Hastings LLP to conduct an independent investigation at the behest and exclusive direction of the Special Committee.
Although the Company’s independent auditors conduct periodic audits in accordance with PCAOB standards and have issued clean audit opinions with respect to their past audits, the Special Committee believes that conducting its own independent investigation into these issues is in the best interest of shareholders. The Special Committee is committed to conducting a prompt, expeditious, and thorough independent investigation, but it is unable to predict the duration or outcome of its investigation. The Company will provide further information from the Special Committee’s investigation at the appropriate time.
“The ILE team is proud of the AI platform that we’ve built. The company I founded has real products, contracts, and revenue,” said ILE Chief Executive Officer Harish Chidambaran, adding, “I would like to re-iterate my firm belief that the short-seller report put out last week contains misleading statements, speculations and innuendos, and I look forward to addressing the short-seller’s allegations as the Special Committee progresses in its investigation. In the meantime, we remain focused on executing our business plan and will not be distracted by typical short seller tactics.”
About iLearningEngines
iLearningEngines (Nasdaq: AILE) is a leading Applied AI platform for learning and work automation. iLearningEngines enables Enterprises to rapidly productize and deploy a wide range of AI applications and use cases (AI Engines) at scale.
iLearningEngines is powered by proprietary vertical specific AI models and data with a flexible No Code AI canvas to drive rapid out-of-the-box deployment while offering low latency and high levels of data security and compliance.
Serving over 1,000 enterprise end customers, iLearningEngines is deployed globally into some of the most demanding vertical markets including Healthcare, Education, Insurance, Retail, Energy, Manufacturing and Public Sector to achieve mission critical outcomes.
For more information about iLearningEngines, please visit: www.ilearningengines.com.
Forward-Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995 with respect to the Business Combination. Forward looking statements generally are accompanied by words such as “believe,” “may,” “will, “estimate,” “continue,” “anticipate,” “intend,” expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” the negative forms of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the Company’s ability to invest in continued platform growth; the potential benefits of the Business Combination, the Company’s future growth prospects, the Company’s ability to drive value for new and existing customers and the Company’s ability to address market opportunities across artificial intelligence. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the iLearningEngines’ management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions this press release relies on. Many actual events and circumstances are beyond the control of iLearningEngines. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; iLearningEngines’ failure to realize the anticipated benefits of the Business Combination; risks related to the rollout of iLearningEngines’ business and the timing of expected business milestones; iLearningEngines’ dependence on a limited number of customers and partners; iLearningEngines’ ability to obtain sufficient financing to pay its expenses incurred in connection with the closing of the Business Combination; the ability of iLearningEngines to issue equity or equity-linked securities or obtain debt financing in the future; risks related to iLearningEngines' need for substantial additional financing to implement its operating plans, which financing it may be unable to obtain, or unable to obtain on acceptable terms; iLearningEngines’ ability to maintain the listing of its securities on Nasdaq or another national securities exchange; the risk that the Business Combination disrupts current plans and operations of iLearningEngines; the effects of competition on iLearningEngines future business and the ability of iLearningEngines to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; risks related to political and macroeconomic uncertainty; the outcome of any legal proceedings that may be instituted against iLearningEngines or any of their respective directors or officers, including litigation related to the Business Combination; the impact of the global COVID-19 pandemic on any of the foregoing risks; and those factors discussed in the Company’s registration statement on Form S-4, as amended or supplemented, under the heading “Risk Factors,” and other documents the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that iLearningEngines does not presently know, or that iLearningEngines does not currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect iLearningEngines’ expectations, plans, or forecasts of future events and views as of the date of this communication. iLearningEngines anticipate that subsequent events and developments will cause iLearningEngines’ assessments to change. However, while iLearningEngines may elect to update these forward-looking statements at some point in the future, iLearningEngines specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing iLearningEngines’ assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
IR & Press Contacts:
Investor Contact:
Kevin Hunt, ICR Inc.
iLearningEnginesIR@icrinc.com
Press Contact:
Dan Brennan, ICR Inc.
iLearningPR@icrinc.com
FAQ
What action has iLearningEngines (AILE) taken in response to the short-seller report?
When will iLearningEngines (AILE) provide results of the investigation into short-seller allegations?
What did iLearningEngines (AILE) CEO Harish Chidambaran say about the short-seller report?
