The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired iQIYI, Inc. (“iQIYI” or the “Company”) (NASDAQ: IQ) securities during the period from March 29, 2018 through April 7, 2020 (the “Class Period”). Investors have until June 15, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that iQIYI failed to disclose that: (i) the Company inflated its revenue figures; (ii) the Company inflated its user numbers; and (iii) the Company inflated its expenses and prices of assets to cover up other fraud.
On April 7, 2020, the investment research firm Wolfpack Research released a report alleging that iQIYI “inflated its 2019 revenue by approximately RMB 8-13 billion, or 27%-44%” by “overstating its user numbers by approximately 42%-60%” and “inflat[ing] its expenses, the prices it pays for content, other assets and acquisitions in order to burn off fake cash to hide the fraud from its auditor and investors.” On this news, iQIYI ADSs fell $0.99 per share over the rest of the trading day and the next full trading day, or 5.6%, to close at $16.51 on April 8, 2020.
If you acquired iQIYI securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.