Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Eastern District of New York on behalf of shareholders of iQIYI, Inc. who purchased shares between March 29, 2018 and April 7, 2020 or issued either in or after the March 2018 Initial Public Offering.
IQIYI and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On April 7, 2020, Wolfpack Research reported that the Company had misled investors and failed to disclose pertinent information generally and in its Registration Statement, including that it had overstated its user numbers by approximately 42%-60%, inflated its revenues by approximately 27%-44%, inflated expenses and prices of assets to conceal its revenue inflation, and issued misleading financial reporting creating the appearance of a cash generative company.
On this news, the price of iQIYI’s shares declined, injuring investors.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until June 15, 2020 to request that the court appoint them lead plaintiff.