WOBURN, MA — A high-tech Woburn company faces a class-action lawsuit claiming it misled investors and covered up important information about business challenges.
The lawsuit, filed in Boston federal court Monday, is against SES AI Corp., which is headquartered at 35 Cabot Road. Five law firms have signed on to represent plaintiffs.
Founded in 2012, SES uses artificial intelligence to develop specialized lithium-metal battery systems for electric vehicles, drones and other uses. The company employs over 200 people in Woburn and two plants in Asia.
SES went public in 2022 and now trades on the New York Stock Exchange. Starting in 2025, the lawsuit claims, SES and its leaders failed to reveal that it was dealing with operational constraints, declining markets and business partnerships that “lacked genuine economic substance.”
In December, the complaint notes, Wall Street research firm Wolfpack accused SES of promoting “phantom deals” to distract attention from its financial problems.
It’s not unusual for a public company to face an investor lawsuit, especially in the rough-and-tumble world of AI.
Still, it’s clear that SES has struggled.
The company on March 4 announced a $73 million loss for 2025 and disclosed some of its logistical obstacles. The next day, the stock price of SES fell 37 percent.
Since the lawsuit's filing, the price has also fallen, slightly, and opened on Friday at $1.02.
Attempts to reach SES for comment on the lawsuit were not immediately successful. But in a Securities and Exchange Commission filing Thursday, the company said it “intends to defend itself vigorously against the claims and to take the necessary steps to endeavor to have them dismissed.”
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