The lawsuit is focused on the propriety of Richtech’s statements concerning its AI-driven robot business.
More specifically, on January 27, 2026, Richtech issued a press release touting “a hands-on collaboration with Microsoft through the Microsoft AI Co-Innovation Labs to jointly develop and deploy agentic artificial intelligence capabilities in real-world robotic systems.” CEO Wayne Huang emphasized, “[o]ur collaboration with Microsoft reflects a shared focus on applying advanced AI to practical, real-world use cases.”
This news implying a meaningful commercial relationship between the two companies sent the price of Richtech shares soaring 30% higher on huge volume that day.
Then, on January 28, 2026, the company announced a dilutive at-the-market private placement with an institutional investor of 8.5 million Class B common shares.
The complaint alleges that Richtech misled investors into believing that it had a meaningful collaborative and commercial relationship with Microsoft when it did not.
Investors’ hopes related to Richtech’s January 27 announcement were dashed two days later. On January 29, 2026, Hunterbrook Media published “Breaking: Microsoft Denies Partnership With Richtech Robotics,” reporting that “Microsoft tells Hunterbrook Media the engagement was a ‘standard’ customer program with ‘no commercial element.’”
According to Hunterbrook’s reporting, a Microsoft representative said “‘[t]here is no commercial element in this lab engagement.’” The report also highlighted that “the ‘collaboration’ Richtech announced appears to be participation in a free prototyping program available to Microsoft customers – not a commercial partnership.”
The market swiftly reacted to this news, sending the price of Richtech shares spiraling over 20% lower on huge volume that day.
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