C3.ai Plunges After Short-Seller Alleges Accounting Issues
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C3.ai Inc. fell the most ever in a single day after short-seller Kerrisdale Capital alleged “serious accounting and disclosure issues” at the enterprise software developer.
The company used “highly aggressive accounting to inflate its income statement metrics in order to meet sell-side analyst estimates for revenue and certain profit metrics, and to conceal significant deterioration in its underlying operations,” Kerrisdale Chief Investment Officer Sahm Adrangi wrote in a letter to Deloitte & Touche LLP, C3.ai’s auditor.