Richtech Robotics has been named in a securities class action lawsuit following a report that Microsoft denied having a commercial partnership with the company, according to a March 20 statement. The lawsuit seeks to represent investors who bought Richtech securities between January 27 and January 29, 2026, after the company’s share price dropped more than 20% in one day.
The case centers on whether Richtech misled investors about its relationship with Microsoft. On January 27, Richtech announced what it described as “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.” Wayne Huang, CEO of Richtech, said, “[o]ur collaboration with Microsoft reflects a shared focus on applying advanced AI to practical, real-world use cases.”
Following this announcement, Richtech’s stock price rose by 30% on high trading volume. The next day, the company disclosed an at-the-market private placement of 8.5 million Class B common shares with an institutional investor. However, on January 29, Hunterbrook Media published an article titled “Breaking: Microsoft Denies Partnership With Richtech Robotics,” quoting a Microsoft representative who said there was “no commercial element in this lab engagement.” The report stated that the so-called collaboration was participation in a free prototyping program available to all Microsoft customers.
Reed Kathrein of Hagens Berman Sobol Shapiro LLP said, “We’re focused on whether Richtech may have intentionally misled investors in order to accomplish the dilutive equity raise and whether the developments are a new flavor of AI washing.” The law firm is encouraging affected investors or those with relevant information to contact them.
Hagens Berman describes itself as a global plaintiffs’ rights complex litigation firm focusing on corporate accountability and says it has secured more than $2.9 billion for clients harmed by corporate negligence and wrongdoing.
PR Newswire operates in more than 170 countries and supports distribution in over 40 languages, according to the official website. It aims to deliver global reach for press release distribution through its network of newsrooms and influencers as detailed on its official website. PR Newswire features expert editors providing round-the-clock support and SEO guidance according to its official website. The organization collaborates with over 500,000 media outlets and influencers globally according to its official website. Its services include press release distribution, AI-enhanced content tools, and social sharing features as outlined on its official website.
