Labaton Sucharow LLP Files Securities Class Action Lawsuit Against iQIYI, Inc. and Certain Executives
21 Aprile 2020 - 4:40PM
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.
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 learn more about these claims, or have any
questions concerning this announcement or your rights or interests
with respect to these matters, please contact David J. Schwartz,
Esq. of Labaton Sucharow, at (800) 321-0476, or via email at
dschwartz@labaton.com.
You can view a copy of the complaint here.
About the Firm
Labaton Sucharow LLP is one of the world’s leading complex
litigation firms representing clients in securities, antitrust,
corporate governance and shareholder rights, and consumer
cybersecurity and data privacy litigation. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200421005611/en/
David J. Schwartz (800) 321-0476 dschwartz@labaton.com or
recover@labaton.com
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