C3.ai sued for misleading investors on growth and CEO health.
ByAinvest
Monday, Sep 22, 2025 8:39 am ET2min read
AI--
The complaint, filed under the caption Liggett v. C3.ai, Inc., alleges that the company projected an overly optimistic picture of its revenue and growth potential. Specifically, the lawsuit alleges that these projections downplayed the significant risk posed by CEO Thomas M. Siebel’s health issues. The plaintiffs contend that C3.ai's public statements on growth and profitability were "unrealistic" and depended too heavily on the health and performance of its chief executive [2].
The case focuses on a significant drop in stock price that followed C3.ai's financial announcement on August 8, 2025. On that date, the company disclosed preliminary first-quarter results that fell short of expectations and lowered its revenue guidance for the full fiscal year. C3.ai 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% [2].
The lawsuit seeks to represent investors who purchased or acquired C3.ai securities during the specified class period, which runs from February 26, 2025, to August 8, 2025. Investors who suffered substantial losses and are interested in serving as a lead plaintiff must file a motion with the court no later than October 21, 2025 [2].
A separate class action lawsuit has also been filed by Bronstein, Gewirtz & Grossman, LLC, alleging similar violations of federal securities laws. This lawsuit claims that C3.ai made materially false and misleading statements and/or failed to disclose that the health of its CEO was materially impairing the Company’s ability to close deals and that management was unable to mitigate the impact of the CEO’s health on business operations [1].
The preliminary Q1 fiscal 2026 financial results released by C3.ai fell short of expectations, with the company reporting a revenue of $70.26 million, which was significantly lower than analysts' estimates of $104.02 million. This resulted in a loss of (-$0.86) earnings per share. The stock price of C3.ai has been volatile, with insiders, including CFO Hitesh Lath and CEO Thomas M. Siebel, selling a combined total of 607,157 shares recently, reflecting a decrease in their ownership stakes [3].
Investors who believe they have suffered losses as a result of these alleged misstatements are encouraged to contact legal counsel to discuss their options. The deadline to request the Court appoint them as lead plaintiff is October 21, 2025 [1][2].
• C3.ai sued for misleading investors on growth trajectory and CEO health. • Lawsuit alleges concealment of adverse facts. • Preliminary Q1 fiscal 2026 financial results fell short of expectations. • Revenue forecast lowered. • Investors with shares from Feb 26 to Aug 8 may seek lead plaintiff status by Oct 21.
C3.ai, Inc. (NYSE: AI) is facing a class action lawsuit alleging that the company misled investors about its financial health and growth prospects. The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that C3.ai and its senior leadership violated the Securities Exchange Act of 1934 [2].The complaint, filed under the caption Liggett v. C3.ai, Inc., alleges that the company projected an overly optimistic picture of its revenue and growth potential. Specifically, the lawsuit alleges that these projections downplayed the significant risk posed by CEO Thomas M. Siebel’s health issues. The plaintiffs contend that C3.ai's public statements on growth and profitability were "unrealistic" and depended too heavily on the health and performance of its chief executive [2].
The case focuses on a significant drop in stock price that followed C3.ai's financial announcement on August 8, 2025. On that date, the company disclosed preliminary first-quarter results that fell short of expectations and lowered its revenue guidance for the full fiscal year. C3.ai 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% [2].
The lawsuit seeks to represent investors who purchased or acquired C3.ai securities during the specified class period, which runs from February 26, 2025, to August 8, 2025. Investors who suffered substantial losses and are interested in serving as a lead plaintiff must file a motion with the court no later than October 21, 2025 [2].
A separate class action lawsuit has also been filed by Bronstein, Gewirtz & Grossman, LLC, alleging similar violations of federal securities laws. This lawsuit claims that C3.ai made materially false and misleading statements and/or failed to disclose that the health of its CEO was materially impairing the Company’s ability to close deals and that management was unable to mitigate the impact of the CEO’s health on business operations [1].
The preliminary Q1 fiscal 2026 financial results released by C3.ai fell short of expectations, with the company reporting a revenue of $70.26 million, which was significantly lower than analysts' estimates of $104.02 million. This resulted in a loss of (-$0.86) earnings per share. The stock price of C3.ai has been volatile, with insiders, including CFO Hitesh Lath and CEO Thomas M. Siebel, selling a combined total of 607,157 shares recently, reflecting a decrease in their ownership stakes [3].
Investors who believe they have suffered losses as a result of these alleged misstatements are encouraged to contact legal counsel to discuss their options. The deadline to request the Court appoint them as lead plaintiff is October 21, 2025 [1][2].
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue

Comments
No comments yet