Innodata Inc. previously disclosed that in 2024 it received subpoenas from the Securities and Exchange Commission (?SEC?) and the U.S. Department of Justice (?DOJ?) requesting the Company to produce certain documents. The Company announced these subpoenas were related to allegations contained in the putative class action against the Company captioned D?Agostino v. Innodata Inc., et al., in the United States District Court for the District of New Jersey (the ?Securities Class Action?) regarding the Company?s prior public statements about its artificial intelligence (AI) capabilities. On June 12, 2025, the DOJ notified the Company that it has closed its investigation into the Company.
Separately, the SEC has likewise notified the Company that it has concluded its investigation and does not intend to recommend an enforcement action against the Company. The Company views the closure of these investigations?without any enforcement actions?as favorable and significant developments. The Company fully cooperated with both the DOJ and SEC throughout the course of their investigations, and the Company intends to vigorously defend itself in the Securities Class Action.
The Company filed a motion to dismiss the Securities Class Action on March 7, 2025. That motion remains pending before the Court.
