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IQIYI Inc. Class Action Lawsuit

Company Name
IQIYI Inc.
Class Period
March 22, 2021 to March 29, 2021
Motion Deadline
January 31, 2022
Court
Southern District of New York
10 days left to seek lead plaintiff status

Case Summary

The IQIYI class action lawsuit charges defendants Goldman Sachs Group Inc. and Morgan Stanley with violations of the Securities Exchange Act of 1934.  The IQIYI class action lawsuit seeks to represent investors who purchased or otherwise acquired IQIYI Inc. shares contemporaneously with defendants’ allegedly unlawful trades from March 22, 2021 through and including March 29, 2021 (the “Class Period”).  The IQIYI class action lawsuit was commenced on December 2, 2021 in the Southern District of New York and is captioned Felix v. Goldman Sachs Group Inc., No. 21-cv-10286.

If you wish to serve as lead plaintiff of the IQIYI class action lawsuit, please provide your information by clicking here.  You can also contact attorney Jennifer Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the IQIYI class action lawsuit must be filed with the court no later than January 31, 2022.

CASE ALLEGATIONS: The IQIYI class action lawsuit alleges that Goldman Sachs and Morgan Stanley sold IQIYI shares to public shareholders after confidentially learning that Archegos Capital Management (“Archegos”), a family office with $10 billion under management, failed (or was likely to fail) to meet a margin call, requiring it to fully liquidate its position in IQIYI.  The IQIYI class action lawsuit further alleges that Goldman Sachs and Morgan Stanley avoided billions in losses by trading in this alleged material non-public information.  As further alleged by the IQIYI class action lawsuit, according to subsequent media reports, defendants unloaded large block trades consisting of shares of Archegos’ doomed bets, including billions worth of IQIYI securities, late Thursday, March 25, 2021, before the Archegos story reached the public, sending IQIYI’s stock into a complete tailspin. 

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased IQIYI shares during the Class Period to seek appointment as lead plaintiff in the IQIYI class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the IQIYI class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the IQIYI class action lawsuit.  An investor’s ability to share in any potential future recovery of the IQIYI class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm.

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