Baidu, Inc. Class Action Lawsuit
- Company Name
- Baidu, Inc.
- Stock Symbol
- Class Period
- April 8, 2016 to August 13, 2020
- Motion Deadline
- October 18, 2020
- Eastern District of New York
The Baidu, Inc. class action lawsuit charges Baidu and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Baidu publicly traded securities between April 8, 2016 and August 13, 2020, inclusive (the “Class Period”). The Baidu class action lawsuit was commenced on August 19, 2020 in the Eastern District of New York and is captioned Alagappan v. Baidu, Inc., No. 20-cv-03794.
Baidu provides Internet search services in China and internationally. Baidu operates through two segments, one of which is iQIYI. Baidu’s iQIYI segment provides online entertainment service, including original and licensed content, membership services, and online advertising services.
The Baidu class action lawsuit alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Baidu misrepresented the financial and business condition of iQIYI; (ii) iQIYI had inadequate controls; and (iii) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On April 7, 2020, Wolfpack Research released a report detailing, among other things, how Baidu’s iQIYI segment had misled investors and failed to disclose pertinent information, including that: (i) iQIYI was overstating its user numbers; (ii) iQIYI was inflating its revenues; (iii) iQIYI was inflating expenses and prices of assets to conceal its revenue inflation; and (iv) iQIYI’s misleading financial reporting created the appearance of a cash generative company. On this news, the price of Baidu’s American Depositary Shares (“ADSs”) fell nearly 4.4%.
Then, on August 13, 2020, Baidu’s iQIYI segment issued a press release announcing that the U.S. Securities and Exchange Commission’s “Division of Enforcement is seeking the production of certain financial and operating records dating from January 1, 2018, as well as documents related to certain acquisitions and investments that were identified in a report issued by short-seller firm Wolfpack Research in April 2020.” Baidu’s iQIYI segment further revealed that “shortly after the publication of the Wolfpack Report, the Company engaged professional advisers to conduct an internal review into certain of the key allegations in the Wolfpack Report and to report their findings to the Company’s Audit Committee.” On this news, Baidu’s ADS price an additional 6.3%, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Baidu securities during the Class Period to seek appointment as lead plaintiff in the Baidu class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Baidu class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Baidu class action lawsuit. An investor’s ability to share in any potential future recovery of the Baidu class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Baidu class action lawsuit or have questions concerning your rights regarding the Baidu class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Baidu class action lawsuit must be filed with the court no later than October 19, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.