Shareholder Alert: Robbins LLP Announces iQIYI, Inc. (IQ) Sued for Misleading Shareholders
April 21 2020 - 1:19PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of iQIYI, Inc. (NASDAQ: IQ) filed a class action
complaint against the Company for alleged violations of the
Securities Exchange Act of 1934 between March 29, 2018 and April 7,
2020. iQIYI provides online entertainment services under the iQIYI
brand in China.
If you suffered a loss as a result of iQIYI's misconduct, click
here.
iQIYI, Inc. (IQ) Accused of Misleading Shareholders
According to the complaint, in March 2018, iQIYI held its
initial public offering ("IPO") offering approximately 125 million
ADSs for $18 per share and raising approximately $2.25 billion in
proceeds. In its Registration Statement, iQIYI touted impressive
online revenue growth from 2015 to 2017 due to "increased
attractiveness and efficiency of [its] advertising services."
Following the IPO, iQIYI continuously touted its growing number of
paying subscribing members as well as its increasing advertising
services revenue. Despite auspicious financials, on April 7, 2020,
Wolfpack Research released a report revealing iQIYI had misled
investors and failed to disclose in its Registration Statement
that: (i) iQIYI overstated its user numbers; (ii) iQIYI inflated
its revenues; (iii) iQIYI inflated its 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. The report concluded "[iQIYI] was committing
fraud well before its IPO in 2018 and has continued to do so ever
since." On this news, ADSs of iQIYI fell almost 6% to close at
$16.51 per ADS.
If you purchased iQIYI, Inc. (IQ) securities between March
29, 2018 and April 7, 2020, you have until June 15, 2020, to ask
the court to be appointed lead plaintiff for the class.
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: https://www.businesswire.com/news/home/20200421005783/en/
Leo Kandinov Robbins LLP lkandinov@robbinsllp.com (619) 525-3990
or Toll Free (800) 350-6003 www.robbinsllp.com
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