This revelation led to a proposed securities class action in October, with shareholder Danny Walker alleging iLearningEngines fabricated revenue and expenses through a partnership with an undisclosed technology firm, causing significant financial damage to investors.
Cyberattack Adds to Pressures
In November, iLearningEngines disclosed that hackers had compromised its network, deleting emails and misdirecting payments. The cyberattack exacerbated financial difficulties and further undermined stakeholder confidence.
Board’s Decision to File
At a Dec. 20 board meeting, interim CEO Thomas Olivier informed directors about a potential financing offer from an unaffiliated entity. Later that day, the board voted to pursue Chapter 11 protection, citing the need to reorganize and regain stability.
Olivier expressed optimism about the filing, stating, “We appreciate the continued support of our customers, partners, and employees, and our hope is that this process will put us in a better position to serve those stakeholders going forward, allowing for a stronger, more robust business over the long-term.”
Case Details
The case has been assigned to U.S. Bankruptcy Judge Laurie Selber Silverstein. ILearningEngines is represented by Ian J. Bambrick of Faegre Drinker Biddle & Reath LLP.
