C3.ai Investors Face Class Action After 25% Plunge; Lead Plaintiff Deadline Oct. 21, 2025
C3.ai faces a securities class action; lead-plaintiff motions for Class Period investors are due Oct 21, 2025. August 2025 guidance cut sparked a 25.6% drop to $16.47.
Investor Alert: C3.ai Securities Class Action - Key Dates, Allegations, and Next Steps for Legal Teams
A securities class action has been filed against C3.ai, Inc. (NYSE: AI). The suit alleges that C3 and certain officers and/or directors engaged in securities fraud or other unlawful business practices. A copy of the complaint is available at pomerantzlaw.com.
Lead plaintiff motions are due by October 21, 2025 for investors who purchased or otherwise acquired C3 securities during the alleged Class Period. The specific Class Period will be defined in the complaint and subsequent pleadings.
Key Catalyst Cited
On August 8, 2025, C3 announced preliminary Q1 FY26 results below expectations and reduced full-year FY26 revenue guidance. The company cited a reorganization under new leadership and health issues affecting its CEO as factors. Following these disclosures, the stock fell $5.66 (25.58%) to close at $16.47 on August 11, 2025.
What Legal Teams Should Consider
- Elements: Expect allegations centered on material misstatements/omissions, scienter, transaction causation, and loss causation tied to the August 2025 disclosures.
- PSLRA Process: Discovery will likely be stayed pending resolution of motions to dismiss. Lead plaintiff selection will turn on the largest financial interest and typicality/adequacy under the PSLRA.
- Forward-Looking Statements: Analyze safe harbor and cautionary language in earnings releases, guidance, and investor presentations.
- Event Study: Prepare for damages modeling around the August 2025 price decline and any prior corrective or confirmatory disclosures.
- Document Sources: Review executive communications, risk disclosures, board minutes on leadership changes, and any health-related disclosures that could bear on materiality.
Action Steps for Prospective Class Counsel or Institutional Investors
- Compile trading records for the alleged Class Period and subsequent sales.
- Preserve communications with brokers and any C3-related research or internal notes.
- Obtain the complaint and assess the alleged misstatements and timeline.
- Prepare PSLRA certifications and loss charts if moving for lead plaintiff.
- Evaluate potential Section 20(a) claims for control person liability, if supported by the facts.
How to Inquire or Join
Prospective class members can contact:
- Danielle Peyton, Pomerantz LLP
- Email: dpeyton@pomlaw.com
- Phone: 646-581-9980 ext. 7980 (or toll-free 888.4-POMLAW)
If you email, include your mailing address, phone number, and the number of shares purchased. For the complaint and participation details, visit pomerantzlaw.com.
Background on the Filing Firm
Pomerantz LLP is a long-standing class action firm with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv. The firm reports numerous multimillion-dollar recoveries for class members in securities, corporate, and antitrust matters.
Statutory Reference
For lead plaintiff procedures and standards under the PSLRA, see 15 U.S.C. § 78u-4 at Cornell Law School's Legal Information Institute.
Attorney advertising. Prior results do not guarantee similar outcomes. This update is for informational purposes only and is not legal advice.
