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iQIYI, Inc.

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired iQIYI Inc. (“iQIYI” or the “Company”) (NASDAQ: IQ) American Depository Shares (ADS) from March 22, 2021 through March 29, 2021, inclusive (the “Class Period”). Investors have until January 31, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

iQIYI is a leading online discount retailer that provides online entertainment services under the iQIYI brand in China.

During the week of March 22, 2021, Defendants sold a large number of iQIYI shares while in possession of material, non-public information. According to subsequent media reports, Defendants unloaded large block trades late Thursday, March 25, 2021, before the Archegos story reached the public, consisting of shares of Archegos’ doomed bets, including billions worth of iQIYI securities, sending iQIYI’s stock into a complete tailspin. On March 27, 2021, it was reported that Archegos failed to cover and, as a result, had to liquidate more than $20 billion of its leveraged equity positions on Friday, March 26, 2021. During the Class Period, iQIYI’s ADS price declined by $11.49 per ADS, or approximately 41%, from $28.04 per ADS to close at $16.55 per ADS on March 29, 2021. 
The lawsuit alleges throughout the Class Period, Goldman Sachs and Morgan Stanley sold a large amount of iQIYI shares during the Class Period while in possession of material, non-public information about Archegos and its need to fully liquidate its position in the Company because of margin call pressure. As a result of these sales, Defendants Goldman Sachs and Morgan Stanley avoided billions in losses combined.

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