LOS ANGELES — Bleichmar Fonti & Auld LLP (BFA Law) announced it is investigating whether ServiceTitan committed securities fraud related to statements about its Max artificial intelligence (AI) platform and plans to expand into new trades.

The investigation follows a significant decline in ServiceTitan shares on Sept. 9. The company’s stock fell approximately 30% after ServiceTitan reported slowing growth in Gross Transaction Volume and provided updated operating income guidance.

ServiceTitan reported Sept. 8 that it expected operating income of $29 million to $30 million, representing a 33.6% sequential decline.

The company also said it had decided to focus on existing commercial trades rather than its previously planned expansion into new trades. ServiceTitan said the shift would allow it to increase investments in and attention on Max.

Max is ServiceTitan’s AI platform designed to automate business workflows for contractors and other trades businesses.

Following the announcement, reactions on social media were mixed, pointing to many new competitors entering the fintech space within the skilled trades will eventually force ServiceTitan to lower prices to become more competitive. Some referred to the space as the "Wild West," with anecdotes of contractors using AI to create their own solutions. 

According to BFA Law, the investigation will examine whether ServiceTitan misled investors about its ability to expand into new trades while developing Max. BFA Law said investors who suffered losses in ServiceTitan securities may obtain additional information about the investigation through the firm.

For HVACR contractors using ServiceTitan or evaluating its Max AI platform, the investigation underscores the importance of understanding how changes to a technology provider’s strategy could affect the tools and services they rely on. Contractors should continue to evaluate AI capabilities, platform investments, and product development based on their operational needs and available information.