The complaint, filed by the law firm Bronstein, Gewirtz & Grossman, asserts that XTI Aerospace failed to disclose that senior executives engaged in unauthorized activities requiring immediate board scrutiny. These omissions allegedly undermined the company’s internal disclosure controls, leaving investors unaware of significant operational risks. Consequently, the firm faced difficulties in filing mandatory earnings reports on time, rendering previous positive statements regarding the company’s financial health and prospects materially inaccurate.

Those who suffered financial losses during this period have until October 27, 2026, to petition the court for lead plaintiff status. While this role involves representing the class, investors are eligible to participate in any potential settlement even if they choose not to serve as a lead plaintiff. The litigation is being handled on a contingency basis, meaning legal fees and expenses are recovered only if the lawsuit results in a successful financial outcome for the investors.