IQIYI INC (IQ) DROPS ON WOLFPACK REPORT: Labaton Sucharow Announces New Investigation of iQiyi & Strongly Encourages Investor...
April 10 2020 - 10:45AM
Business Wire
Labaton Sucharow LLP, a nationally ranked and award winning
investor rights law firm, announces it is developing a proprietary
investigation concerning potential securities claims on behalf of
shareholders of IQIYI INC (Ticker: IQ) resulting from allegations
that IQ may have issued materially misleading business information
to the investing public.
IQ, which is majority owned by Chinese search giant Baidu, is a
video streaming platform considered to be the “Netflix of
China.”
Wolfpack Research, which describes itself as an “activist
research and due-diligence firm”, released a report on Tuesday,
alleging that iQiyi “was committing fraud well before its IPO
(initial public offering) in 2018 and has continued to do so ever
since.”
Wolfpack surveyed 1563 iQiyi users within IQ’s target
demographic in China during October and November 2019 and found
that approximately 31.9% of IQ users have access to its VIP-only
content through their memberships with IQ’s partners. Wolfpack
estimates IQ inflated its 2019 revenue by approximately RMB 8-13
billion, or 27%-44%.
The company pushed back against the report and said it believes
it contains “numerous errors, unsubstantiated statements and
misleading conclusions and interpretations.”
In 2018, iQiyi was spun off from Chinese search giant Baidu in a
U.S. IPO that raised over $2.2 billion. Baidu holds a more than 56%
stake in iQiyi. Often dubbed the “Netflix of China”, iQiyi has
become one of the major content streaming platforms in the
country.
IQ stock dropped nearly 5% yesterday on extraordinary volume and
is trading down in today’s pre-market.
If you are a shareholder or option holder that suffered losses
in IQ, 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
recover@labaton.com.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200410005139/en/
David J. Schwartz (800) 321-0476 dschwartz@labaton.com or
recover@labaton.com
iQiyi (NASDAQ:IQ)
Historical Stock Chart
From Apr 2024 to May 2024
iQiyi (NASDAQ:IQ)
Historical Stock Chart
From May 2023 to May 2024