(AI) NEWS: Did You Lose Money on Your C3.ai Investment? Contact Johnson Fistel Regarding Investigation
SAN DIEGO, February 16, 2022 /Newsfile/ —
Shareholder Rights Law Firm Johnson Fistel, LLP is investigating potential violations of the federal securities laws by C3.ai, Inc. (NYSE: AI).
On February 16, 2022, Spruce Point Capital Management, LLC published a short-seller report on C3.ai. In the report, Spruce Point states, ” We find multiple instances of claims made by C3 that appear to be exaggerated, or don’t reconcile with our research findings:
- Cumulative Investment In The C3 Technology Platform: claimed to be $1.0 billion vs. our $500-$785m estimate
- Customers:Given shifty customer definition disclosures, we see a high probability C3 is overstating paying and active customers
- Inflated Technology Value: C3 put a value of $60m on its technology as an in-kind donation to its Digital Transformation Institute despite its largest customers spending ~$28m and our research indicating its maximum value was around $25m
- Total Addressable Market (TAM): C3 materially changed its TAM claim during the IPO process from $170 to $271 billion
- Pace of Market Growth and C3 Adoption (Market Share): Evidence that market projections keep getting pushed out farther into the future. C3’s implied market share of just 0.12% supports market size inflation, or its irrelevance in the industry
- Sales cycle: Conflicting statements between C3 and its CEO. Company says 6-9 months typical sales cycle. CEO says 4.5 months and declining every month. Interviews of former C3 salesforce workers indicate the cycle is closer to 18 months –2 years
- Alliances: Highly promoted alliances and partnerships with technology bellwethers like HPE, Google, Microsoft, AWS and Intel which we believe either fizzled out, or don’t appear to have grown to the degree they were promoted.” trade at material valuation discounts as a result of being under-covered in the BPO
Following this report, the price of C3.ai shares was down over 6% in early morning trading on February 16, 2022.
Specifically, Johnson Fistel’s investigation seeks to determine whether the Company issued false or misleading statements or failed to disclose information pertinent to investors.
If you have information that could assist in this investigation, including past employees and others, or a C3.ai shareholder interested in learning more about the investigation, please contact Jim Baker (jimb@johnsonfistel.com) by email or phone at 619-814-4471. If emailing, please include a phone number. There is no cost or obligation to you.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. Johnson Fistel seeks to recover losses incurred due to violations of federal securities laws. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
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