iLearningEngines (AILE) shares tumbled 10% on Tuesday after saying it recently placed several top executives, including Chief Executive Harish Chidambaran, on administrative leave while a special board committee works to finish an investigation into accusations by a short-selling firm of financial irregularities at the artificial intelligence company.

In addition to Chidambaran, four other executives began leaves on Dec. 5, the company said. Among them were former Chief Financial Officer Sayyed Farhan Naqvi, who now leads corporate development at iLearningEngines, along with company President and Chief Business Officer Balakrishnan Arackal.

Two other individuals at the senior vice president level also started leaves last week, iLearningEngines said, adding Chidambaran and Arackal will remain board members during the probe. Thomas Olivier, another board member who currently is chief operating officer at the company, was named interim CEO, it said.

The special board panel has been examining iLearningEngines' finances since Sept. 5 after it was accused by short-sellers Hindenburg Research of being "borderline insolvent" and misrepresenting revenue levels and customer activity in its public statements. The company did not indicate Tuesday when it expects to complete its audit.

iLearningEngines also said Tuesday it recently received a notice of non-compliance from the Nasdaq Stock Market after missing the deadline for filing the Form 10-Q quarterly report for the three months ended Sept. 30.

Price: 1.08, Change: -0.12, Percent Change: -10.00