Exclusive-Moonshot execs in talks to settle dispute with shareholder ahead of planned IPO, people say

Top executives of Chinese AI startup Moonshot are engaged in negotiations to settle a legal dispute with Recurrent.ai, a shareholder demanding compensation for alleged wrongdoing, ahead of Moonshot's planned Hong Kong IPO, according to sources. Recurrent.ai alleges that Moonshot CEO Yang Zhilin and CTO Zhang Yutao made false representations to Recurrent investors and enriched themselves at Recurrent's expense, as per a March 11 letter from Recurrent's lawyers sent to Moonshot's investors.

Yang and Zhang co-founded Recurrent.ai in 2016, and remain directors of Recurrent's holding company. Moonshot declined to comment on the matter.