Labaton Sucharow LLP Files Securities Class Action Lawsuit Against iQIYI, Inc. and Certain Executives
April 17 2020 - 9:11PM
Business Wire
Labaton Sucharow LLP (“Labaton Sucharow”) announces that on
April 17, 2020, it filed a securities class action lawsuit,
captioned Shiferaw v. iQIYI, Inc., No. 20-cv-3115 (S.D.N.Y.) (the
“Action”), on behalf of its client Sintayehu Shiferaw (“Shiferaw”)
against iQIYI, Inc. (“iQIYI” or the “Company”) (NASDAQ: IQ) and
certain executive officers (collectively, “Defendants”). The Action
asserts claims under Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 (the “Exchange Act”) and SEC Rule 10b-5
promulgated thereunder, on behalf of all persons or entities who
purchased or otherwise acquired iQIYI’s securities between March
29, 2018 through April 7, 2020, both dates inclusive (the “Class
Period”), who were damaged thereby (the “Class”).
iQIYI operates a Chinese online streaming platform which is
currently one of the largest video-based websites in the world,
with on-demand video content. The Company generates its revenue
primarily from membership services and online advertising. The
Action alleges that, during the Class Period, Defendants made
materially false and/or misleading statements and omissions.
Specifically, Defendants overstated iQIYI’s 2019 revenue by 27%-44%
and the Company’s user numbers by 42%-60%. iQIYI also inflated its
expenses to conceal these misstatements from investors.
This fraud was revealed on April 7, 2020 by Wolfpack Research.
On that date, Wolfpack Research published a 37-page report
detailing Defendants’ scheme to defraud investors. Among other
things, this report explained how iQIYI had materially overstated
its revenue and subscriber numbers. On this news, iQIYI’s American
Depositary Shares (“ADSs”) fell $1.01 per share, or 5.8 percent,
over the remainder of the day and the next full trading day to
close at $16.51 per share April 8, 2020. As a result of Defendants
false and/or misleading statements and/or omissions, the Class
suffered harm under the Exchange Act.
If you purchased iQIYI securities, including ADSs, during the
Class Period and were damaged thereby, you are a member of the
Class and may be able to seek appointment as Lead Plaintiff. Lead
Plaintiff motion papers must be filed with the U.S. District Court
for the Southern District of New York no later than June 15,
2020. The Lead Plaintiff is a court-appointed representative
for absent members of the Class. You do not need to seek
appointment as Lead Plaintiff to share in any Class recovery in the
Action. If you are a Class member and there is a recovery for the
Class, you can share in that recovery as an absent Class member.
You may retain counsel of your choice to represent you in the
Action.
If you would like to consider serving as Lead Plaintiff or have
any questions about this lawsuit, you may contact David J.
Schwartz, Esq. of Labaton Sucharow, at (800) 321-0476, or via email
at dschwartz@labaton.com.
Shiferaw is represented by Labaton Sucharow. which represents
many of the largest pension funds in the United States and
internationally with combined assets under management of more than
$2 trillion. Labaton Sucharow has been recognized for its
excellence by the courts and peers, and it is consistently ranked
in leading industry publications. Offices are located in New York,
NY, Wilmington, DE, and Washington, D.C. More information about
Labaton Sucharow is available at www.labaton.com.
You can view a copy of the complaint here.
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version on businesswire.com: https://www.businesswire.com/news/home/20200417005659/en/
David J. Schwartz (800) 321-0476 dschwartz@labaton.com
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