BAIDU REPORT: National Litigation Firm Labaton Announces Investigation of Baidu, Inc. (NASDAQ: BIDU) Relating to Its Controlling Interest in iQIYI (NASDAQ: IQ) and Strongly Encourages Investors with Losses to Contact the Firm
NEW YORK–(BUSINESS WIRE)–Labaton Sucharow LLP, a leading investor rights law firm, announces it is developing a proprietary investigation concerning potential securities claims on behalf of shareholders of Baidu, Inc. (NASDAQ: BIDU) resulting from allegations that Baidu may have issued materially misleading business information to the investing public.
Baidu is a Chinese multinational technology specializing in Internet-related services and products and artificial intelligence (AI). The Baidu search engine is currently the fourth largest website in the Alexa internet rankings. Baidu founded iQIYI in 2010. Baidu held a 69.6% stake in iQIYI prior to its IPO in early 2018, and now has a 56% controlling interest in iQIYI.
On August 13, after hours, iQIYI announced:
“The SEC’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 (“Wolfpack Report”). The Company is cooperating with the SEC. We cannot predict the timing, outcome, or consequences of the SEC investigation.
“In addition, 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 (“Internal Review”). These professional advisers have been examining the Company’s books and records and undertaking testing procedures that, in their judgment, are necessary and appropriate to evaluating the key allegations in the Wolfpack Report, including accounting policy analysis, data analytics on whether the Company manufactured orders and inflated revenues and/or expenses. The Internal Review is ongoing and we cannot predict the timing for completion, outcome, or consequences of the Internal Review at this time.”
On this news, after hours, Baidu was down 7.7% at $115.04.
If you are a shareholder or option holder that suffered losses in Baidu, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll free number (800) 321-0476 or via email at email@example.com or firstname.lastname@example.org.
About the Firm
Labaton Sucharow LLP is one of the world’s leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at http://www.labaton.com.
David J. Schwartz