C3.ai, Inc. has provided an update regarding a putative securities class action complaint filed against the company and certain current and former officers and directors. The lawsuit, titled 'The Reckstin Family Trust v. C3.ai, Inc. et al.', was initiated on March 4, 2022, in the U.S. District Court for the Northern District of California. On March 12, 2026, the court issued an order granting in part and denying in part the defendants' motions to dismiss the third amended complaint. As a result, three of the five causes of action have been dismissed, leaving only a single claim related to a statement in the Registration Statement issued during the company's initial public offering on December 9, 2020. The court dismissed with prejudice claims alleging misleading statements made with intent to deceive, as well as claims of insider trading against certain defendants. The remaining claims pertain to allegations under Sections 11 and 15 of the Securities Act of 1933, specifically concerning a statement about revenue recognition from a subscription agreement and reseller arrangement with Baker Hughes. C3.ai believes that the remaining claims are without merit and intends to vigorously defend against them. The company is optimistic about a favorable resolution, as the statement in question aligns with the financials disclosed in its 2022 Form 10-K, which indicated significant revenue generated from Baker Hughes during Fiscal Year 2020. This development is seen as a positive outcome for C3.ai, as it reduces the scope of the litigation and the potential liabilities associated with the dismissed claims.

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