LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired 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.
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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.
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If you purchased iQIYI securities during the Class Period, you may move the Court no later than June 15, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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