Lead Plaintiff Deadline: 06/16/2020
SUMMARY OF CASE:
A securities class action has been filed against iQIYI, Inc. (IQ) on behalf of persons who purchased or otherwise acquired iQIYI’s securities between March 29, 2018 through April 7, 2020. This case has been filed in the USDC – E.D.N.Y.
The Complaint alleges that on April 7, 2020, Wolfpack Research released a report alleging that “IQ was committing fraud well before its IPO in 2018 and has continued to do so ever since.” Wolfpack estimates that iQIYI inflated its 2019 revenue by approximately RMB 8-13 billion, or 27%-44%, by overstating its user numbers by approximately 42%-60.
On this news, iQIYI ADSs fell $0.99 per share over the rest of the trading day and the next full trading day, or over 5%, to close at $16.51 per share on April 8, 2020, damaging investors.