Innodata, Inc. (NASDAQ: INOD)

This lawsuit is for anyone who acquired securities in Innodata, Inc. (NASDAQ: INOD) from May 9, 2019 through February 14, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by touting itself as an AI pioneer when, in fact, the Company powered its operations through thousands of low-wage offshore workers, not through proprietary AI technology.

On February 15, 2024, Wolfpack Research published a report alleging, among other things, that Innodata is “a deteriorating, manual data-entry business driven by offshore labor, not innovation.” Wolfpack further alleged that “[s]igns that [Innodata] is not an AI company are everywhere” noting the Company’s minimal spending on cloud services and R&D, as well as the fact that “96% of [its] workforce is overseas and its average employee generates less than $20k of revenue annually.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Innodata, Inc. (NASDAQ: INOD) from May 9, 2019 through February 14, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.