C3.ai Faces Class Action: Are You Eligible to Join the Securities Fraud Lawsuit?

Did you invest in C3.ai between February 26, 2025, and August 8, 2025? If so, you might be eligible to join a class action lawsuit alleging the company misled investors about its financial health and growth prospects. This blog post will break down the lawsuit, explain who is eligible to participate, and provide advice on what steps you can take to protect your interests.

The Allegations Against C3.ai

Several law firms have announced class action lawsuits against C3.ai (NYSE: AI), an enterprise AI software company. These lawsuits, including Liggett v. C3.ai, Inc., filed in the U.S. District Court for the Northern District of California, allege violations of the Securities Exchange Act of 1934. The core of the অভিযোগ is that C3.ai and its senior executives made false and misleading statements, and/or failed to disclose material adverse facts about the company’s business, operations, and prospects.

Specifically, the lawsuits claim that C3.ai:

Overstated its revenue and growth potential: The company allegedly presented an overly optimistic picture of its financial outlook.
Downplayed risks related to the CEO’s health: The lawsuits allege that C3.ai failed to adequately disclose how CEO Thomas M. Siebel’s health issues were affecting the company’s ability to close deals and meet financial targets.
Relied too heavily on CEO’s health: The company’s optimistic statements about growth, earnings potential, and margins were misleading, as they relied too heavily on the health and effectiveness of the company’s CEO, Thomas M. Siebel.

The lawsuits point to a significant drop in C3.ai’s stock price following the company’s financial announcement on August 8, 2025. On that date, C3.ai disclosed preliminary first-quarter results that fell short of expectations and lowered its revenue guidance for the full fiscal year. The company attributed these disappointing results to “reorganization with new leadership” and Siebel’s health problems. Following this news, the stock price reportedly plummeted by more than 25%. For example, from a closing market price of $22.13 per share on August 8, 2025, C3 AI’s stock price fell to $16.47 per share on August 11, 2025, a decline of about 25.58% in the span of just a single day.

Who is Eligible to Join the Class Action?

You may be eligible to join the class action lawsuit if you purchased or acquired C3.ai securities between February 26, 2025, and August 8, 2025. This period is known as the “class period.”

To be appointed as a lead plaintiff, you must meet certain criteria, including:

Having purchased or acquired C3.ai securities during the class period.
Having suffered financial losses as a direct result of the alleged securities fraud.

What is a Securities Fraud Class Action Lawsuit?

Securities fraud class action lawsuits are a critical tool for investors who have suffered financial losses due to corporate malfeasance. These lawsuits arise when a company or its executives engage in deceptive practices that mislead investors about the company’s financial health or prospects. The goal is to hold the perpetrators accountable and secure compensation for the affected investors.

Securities fraud can take many forms, including:

Making fraudulent misstatements: Manipulating stock prices by disseminating false information.
Intentional concealment: Omitting or manipulating financial information to mislead investors.
Insider trading: Using non-public information for personal gain.

Understanding the Lead Plaintiff Role

In a securities class action, a lead plaintiff acts on behalf of all other class members. The lead plaintiff’s responsibilities include:

Directing the litigation.
Selecting a law firm to litigate the case.
Making decisions about settlement negotiations.

The court typically appoints the investor with the largest financial interest in the case as the lead plaintiff, as they have the most at stake and are likely to vigorously pursue the litigation. The Private Securities Litigation Reform Act of 1995 (PSLRA) encourages institutional investors to take on this role to ensure that the interests of the class are well-represented.

How to Participate

If you believe you are eligible to participate in the class action, here are the steps you can take:

Contact a law firm: Many law firms are currently investigating and filing lawsuits against C3.ai. Contacting a firm specializing in securities litigation can help you understand your rights and options. Some of the law firms include: Hagens Berman, Robbins Geller Rudman & Dowd LLP, Pomerantz LLP, The Schall Law Firm, The Law Offices of Howard G. Smith, Levi & Korsinsky, Glancy Prongay & Murray LLP, and Robbins LLP.
Preserve documentation: Gather and preserve all documents related to your C3.ai investment, including brokerage statements, transaction confirmations, and any communications with the company.
File a motion to be lead plaintiff (if desired): If you have suffered substantial losses and wish to take a more active role in the litigation, you can file a motion with the court to be appointed as lead plaintiff. The deadline to file this motion is October 21, 2025.
Stay informed: Keep up-to-date on the progress of the lawsuit by monitoring court filings and news reports.

Important Considerations

No guarantee of recovery: Participating in a class action lawsuit does not guarantee that you will recover any money. The outcome of the litigation will depend on the strength of the evidence and the court’s decision.
Deadline to act: The deadline to file a motion to be lead plaintiff is October 21, 2025. While you can still participate in the class action after this date, you will not have the opportunity to take a leadership role in the litigation.
Consult with an attorney: It is always a good idea to consult with an attorney to discuss your legal rights and options.

The Importance of Loss Causation

To succeed in a securities fraud class action, plaintiffs must demonstrate “loss causation.” This means proving a direct causal link between the alleged misconduct and the economic harm suffered by investors. In other words, you must show that the false or misleading statements made by C3.ai directly caused the decline in the company’s stock price and your resulting losses.

Is C3.ai’s Stock a Good Investment?

C3.ai, a developer of enterprise artificial intelligence (AI) software, has had a volatile history since its IPO. While it initially attracted significant investor interest, its stock price has fallen considerably from its peak. Factors to consider when evaluating C3.ai as an investment include:

Revenue growth: C3.ai expects its revenue to increase by 15%-25% for fiscal year 2026.
Profitability: The company is not yet profitable and expects to continue incurring operating losses.
Stock-based compensation: A significant portion of C3.ai’s revenue is consumed by stock-based compensation, which could lead to dilution of shareholder value.

Conclusion

If you invested in C3.ai between February 26, 2025, and August 8, 2025, you may be eligible to join the class action lawsuit. By understanding the allegations, your rights, and the steps you can take to participate, you can protect your interests and potentially recover some of your losses. Don’t hesitate to seek legal advice from a qualified attorney to discuss your options and ensure you meet all deadlines.