BIDU Shareholder Alert: Baidu, Inc. Securities Class Action Lawsuit - Investors Should Contact Levi & Korsinsky

Alert: Claims Focus on Alleged Misrepresentations About Baidu's Operational Shift From Legacy Search Advertising to AI Cloud, as the Core AI-Powered Business Itself Fell 8% Quarter Over Quarter.

NEW YORK, Oct. 28, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP reminds purchasers of Baidu, Inc. (NASDAQ: BIDU) securities of a pending securities class action brought on behalf of investors who acquired shares between November 18, 2025 and August 17, 2026. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

Baidu ADS fell $13.25 per share, or 12.73%, to close at $90.87 on August 18, 2026, on unusually heavy trading volume, down from a Class Period high of $162.52 on January 22, 2026. Investors have until November 13, 2026 to seek lead plaintiff status.

The Alleged 8% Reversal in the AI-Powered Business

Baidu's operating model rests on one transition: revenue from Online Marketing Services, the legacy search advertising engine, is shrinking, and AI Cloud Infra, AI Applications, and AI-native Marketing Services are meant to replace it. The action contends that the replacement math never worked as represented. For the second quarter of 2026, Baidu Core AI-powered Business revenue fell 8% quarter over quarter to RMB 12.5 billion ($1.86 billion), with year-over-year growth decelerating from 49% in the first quarter of 2026 to 25%.

Legacy Runoff Allegedly Outpaced the AI Build-Out

AI Cloud Infra, the largest component of the AI-powered segment, declined 17% quarter over quarter, from RMB 8.8 billion to RMB 7.3 billion, while Legacy Business revenue dropped 23% year over year to RMB 10.4 billion. As pleaded, management characterized the AI transition as cushioning the legacy decline at a time when the segment expected to absorb that decline was itself contracting.

Alleged Business-Transition Impact by the Numbers

• Online Marketing Services revenue fell 17.6% year over year in the third quarter of 2025, when it represented roughly 53.1% of total revenues.
• Full year 2025 total revenue declined 3% year over year to RMB 129.1 billion ($18.46 billion).
• Fourth quarter 2025 total revenue fell more than 4% year over year to RMB 32.7 billion ($4.68 billion).
• First quarter 2026: Baidu Core AI-powered Business revenue exceeded RMB 13.6 billion, reported as up 49% year over year.
• Second quarter 2026: that same AI-powered business fell to RMB 12.5 billion, an 8% sequential decline.
• Second quarter 2026: total Online Marketing Services revenue fell 19% year over year to RMB 13.1 billion.

"The complaint raises serious questions about whether investors received accurate information about how much of Baidu's legacy advertising decline the AI-powered segment could actually absorb. When the segment described as cushioning that decline itself contracts 8% in a single quarter, shareholders are entitled to ask what was known internally and when." -- Joseph E. Levi, Esq.

Plaintiffs allege that these operational realities were not disclosed while the Company's securities traded at artificially inflated prices.

Submit your information now or call (212) 363-7500.

WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until November 13, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the BIDU Lawsuit

Q: How much did BIDU stock drop? A: Shares fell approximately 12.73%, a decline of $13.25 per share, after the Company disclosed second quarter 2026 results showing that Baidu Core AI-powered Business revenue fell 8% quarter over quarter while Legacy Business revenue fell 23% year over year. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the BIDU lawsuit allege? A: The complaint alleges Baidu, Inc. made materially false or misleading statements regarding the ability of its AI-powered business to mitigate rapid declines in its legacy online marketing business during the Class Period. When the deceleration of the AI-powered segment was disclosed, the stock price declined sharply.

Q: When did Baidu, Inc. allegedly mislead investors? A: The Class Period runs from November 18, 2025 to August 17, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What do BIDU investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my BIDU shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.

CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected]\
Tel: (212) 363-7500\
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP