BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased iQIYI, Inc. (“iQIYI” or the Company”) (NASDAQ: IQ) securities between March 29, 2018 and April 7, 2020, inclusive (the “Class Period”). iQIYI investors have until June 15, 2020 to file a lead plaintiff motion.
Investors suffering losses on their iQIYI investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On March 29, 2018, iQIYI conducted its initial public offering (“IPO”), issuing 125,000,000 American Depositary Shares (“ADSs”) priced at $18.00 per share.
Then, on April 7, 2020, Wolfpack Research (“Wolfpack”), a global financial research and due diligence firm, published a report alleging that the Company “was committing fraud well before its IPO in 2018 and has continued to do so ever since.” Wolfpack estimates that the Company inflated its 2019 revenue by approximately RMB 8 billion to RMB 13 billion, or 27% to 44%, by overstating its user numbers by approximately 42% to 60%.
On this news, the Company’s share price fell $0.79, or over 4%, to close at $16.51 per share on April 8, 2020, thereby injuring investors.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) iQIYI inflated its revenue figures; (2) iQIYI inflated its user numbers; (3) iQIYI inflated its expenses to cover up other fraud; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times
If you purchased iQIYI securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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