SuperX AI Stock Plummets 27% on 'AI Washing' Allegations
A scathing short-seller report accuses the company of being a 'pump-and-dump' scheme, prompting investigations by investor rights law firms.
Shares of SuperX AI Technology (SUPX) cratered on Friday, plunging over 27% after a damning report from short-seller J Capital Research accused the company of being an elaborate 'pump-and-dump' scheme engaged in 'AI washing.' The report alleges the firm, which was founded as an interior design company, is merely pretending to be in the artificial intelligence sector.
The central claim in the J Capital report is that SuperX AI has misled investors about its technological capabilities. The short-seller alleges the company's AI products are nothing more than Furthermore, the report casts doubt on major announcements, including a supposed '$200 mln superfactory' and a 'Japanese AI Supply Center,' for which J Capital claims to have found no evidence of progress.
The market's reaction to these accusations was swift and brutal, wiping out a significant portion of the company's value. In the wake of the stock's collapse, law firms have begun to circle. Both Hagens Berman and Gibbs Mura Law Group have announced they are who incurred significant financial losses, probing whether SuperX violated U.S. securities laws through false and misleading statements.
The situation underscores a growing risk for investors as companies rush to capitalize on the AI boom. This event could trigger more intense and may lead to increased regulatory scrutiny for the industry as a whole. For SuperX AI, the allegations present a serious challenge to its credibility and financial stability, leaving investors to grapple with the fallout from the stunning claims.