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Investing.com -- Fuzzy Panda Research has announced a short position in Rezolve AI (NASDAQ:RZLV), claiming the company is misrepresenting its artificial intelligence capabilities and revenue growth.
The short seller alleges Rezolve is "faking ARR by acquiring failing AI start-ups with declining revenue" while its CEO Dan Wagner has a history of making false statements. According to the report, Rezolve’s partnerships with Microsoft and Google are not true collaborations but rather arrangements where Rezolve pays the tech giants millions for minimal returns.
Fuzzy Panda claims Rezolve’s products have "zero reviews and minimal downloads" and that its proprietary large language model is merely a "ChatGPT wrapper" with no competitive advantage.
The report also alleges self-dealing, stating Rezolve acquired a non-AI company owned by Wagner himself, paying his Seychelles-based LLC approximately $93.9 million. Additionally, an undisclosed lawsuit reportedly shows management attempting to move investor cash and Bitcoin to Kazakhstan.
Former employees interviewed by Fuzzy Panda allegedly recommended shorting the stock, with one stating they believed "the rug will get pulled at some point and then it will come crashing down."
The short seller also suggests Rezolve could face removal from the Russell 2000 Index, which could create additional selling pressure on the stock.
Rezolve AI has not yet responded to these allegations.
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