Investors who acquired XTI Aerospace, Inc. securities from April 15 through Aug. 17 can seek to lead a proposed class action by Oct. 27, Faruqi & Faruqi, LLP said.
A lead plaintiff represents the proposed class and directs the litigation. The case, Noalan v. XTI Aerospace Inc. et al., was filed Aug. 28 in the U.S. District Court for the Southern District of New York by plaintiff Eric Noalan. The complaint names XTI, former Chairman and CEO Scott Pomeroy, and CFO Brooke Turk as defendants.
The complaint covers people and entities that bought or otherwise acquired XTI securities during the stated period. It alleges that defendants withheld information about executive conduct that warranted board review. It also questions the reliability of XTI’s disclosure controls and says favorable statements about the company’s business, operations and prospects misled investors. These are allegations, not court findings.
XTI said in an Aug. 17 filing that it could not submit its quarterly report for the period ended June 30 on time while a committee of independent directors reviewed matters involving its former CEO and related governance issues. Pomeroy resigned that day.
In an Oct. 13 filing, XTI said the committee had completed its review and found no financial misstatements. Interim CEO Jeremy Schneiderman said XTI was on track to file the report by Oct. 26.
Nasdaq had notified XTI that the delayed report put the company out of compliance with a timely-filing requirement. XTI said the notice had no immediate effect on its listing and gave it until Oct. 26 to submit a compliance plan if the report remained unfiled.
The company’s stated filing target is Oct. 26; investors seeking to lead the case must move by Oct. 27, according to Faruqi & Faruqi.
