Class Action
Innodata AI-Washing Securities Litigation
D'Agostino v. Innodata Inc., et al.
Where it stands
Widely described as the first AI-washing securities class action. On April 27, 2026, U.S. District Judge Jamel K. Semper granted Innodata's motion to dismiss the amended complaint, finding the plaintiff failed to plead with sufficient particularity that confidential former employees possessed the knowledge attributed to them.
Key ruling
April 27, 2026 (Semper, J.): amended complaint dismissed; confidential-witness allegations held insufficiently particularized to support a strong inference of scienter.
Note on this record
Whether the April 2026 dismissal was with or without prejudice, and whether an appeal or further amendment followed, is not confirmed in the public sources reviewed. Court-appointed lead counsel not verified — Levi & Korsinsky filed the initial complaint and Cohen Milstein posted a later complaint, but no appointment order was located.The record
- Court
- U.S. District Court for the District of New Jersey
- Case number
- 2:24-cv-00971
- Filed
- 2024-02-21
- Defendants
- Innodata Inc. · Certain Innodata officers and directors
- Plaintiffs
- Purchasers of Innodata common stock between May 9, 2019 and February 14, 2024
- Technology at issue
- Innodata AI/LLM data-engineering and data-annotation services
- Relief sought
- Compensatory damages for the class under Exchange Act §§ 10(b) and 20(a) and Rule 10b-5
Claims pleaded
Sources (4)
- First AI-Related Securities Suit FiledThe D&O Diary · 2024-02-25
- Innodata gets investor's amended US claims dismissedMLex · 2026-04-27
- Innodata Inc. Litigation ReportLevi & Korsinsky, LLP · 2024-04-02
- Innodata Suit Highlights 'AI Washing' Liability Risk for Cos.Bracewell LLP · 2024-03-01
This page describes a publicly filed case. This site is not counsel on this matter, nothing here is legal advice, and the allegations described are allegations unless a court has said otherwise.