NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in iQIYI, Inc. ("iQIYI" or the "Company") of the June 15, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in iQIYI stock or options between March 29, 2018 and April 7, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/IQ. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to[email protected].
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected]w.com Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased IQ securities between March 29, 2018 and April 7, 2020 (the "Class Period"). The case, Lee v. iQIYI, Inc. et al., No. 20-cv-01830 was filed on April 16, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (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' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On April 7, 2020, Wolfpack Research released a report alleging that "IQ was committing fraud well before its IPO in 2018 and has continued to do so ever since." Wolfpack estimates that iQIYI inflated its 2019 revenue by approximately RMB 8-13 billion, or 27%-44%, by overstating its user numbers by approximately 42%-60%.
On this news, IQ's share price fell from $17.30 per share on April 7, 2020 to a closing price of $16.51 on April 8, 2020: a $0.79 or a 4.57% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding IQ's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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