C3.ai court grants defendants' motion to dismiss complaint

On March 12, 2026, a U.S. District Court in the Northern District of California ruled on a motion to dismiss in the ongoing securities class-action lawsuit against C3.ai, Inc. Judge Haywood S. Gilliam, Jr. granted the motion in part and denied it in part, narrowing the scope of the claims brought by the plaintiffs. The court dismissed most allegations, including those related to alleged misleading statements and insider trading claims against current and former executives. However, limited claims under Sections 11 and 15 of the Securities Act of 1933 remain, specifically tied to one statement in C3.ai’s IPO registration.

The ruling reduces the legal risk and potential liability for C3.ai and its executives, though the case is not yet fully resolved. Plaintiffs are expected to seek class certification in November 2026, following a scheduling order allowing document production and fact discovery over the summer and fall of 2026. The court’s decision is seen as a procedural milestone in the litigation, which has spanned several years and involved multiple amended complaints.

The lawsuit, initially filed in March 2022, alleges that C3.ai and its leadership made false or misleading statements regarding the company’s business relationships, financial reporting, and market projections. The case has drawn attention due to its implications for investor confidence and corporate governance in the AI sector. With the stock price of C3.ai under pressure—down 64.4% over the past year—investors are closely watching how the legal developments may affect the company’s financial outlook.