By Josh Beckerman
Shares of iLearningEngines declined after the learning and work automation company said Chief Executive Harish Chidambaran, former chief financial officer Sayyed Farhan Naqvi and three other executives were placed on administrative leave.
The stock was down 11% to $1.07 and is down about 90% this year.
Thomas Olivier was named interim CEO.
A special board committee has been overseeing an internal investigation conducted by outside counsel with respect to allegations raised in an Aug. 29 report by short-seller Hindenburg Research.
The committee and its advisors "have been focused on validating the Company's revenues and associated customer contracts, value-added reseller $(VAR.AU)$ partnerships and products and enterprise-specific AI models, as well as reviewing other claims made by a short seller," iLearningEngines said Tuesday. The investigation remains ongoing.
"We suspect both the company's revenue and expenses are largely fake," Hindenburg said in August. In response, the company said in August that "We have reviewed the full report and believe it contains misleading statements, speculations and innuendos."
The company also said Tuesday that it received a Nasdaq notice due to its failure to timely file its Form 10-Q for the Sept. 30 quarter.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
December 10, 2024 13:37 ET (18:37 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.