What Should Baidu, Inc. Investors Know After 12.73% Stock Drop? The Law Offices of Frank R. Cruz Outlines Securities Fraud Class Action Lead Plaintiff Deadline

Lawsuit alleges Baidu, Inc. made misleading statements to investors from November 18, 2025 to August 17, 2026; lead plaintiff motions are due November 13, 2026

LOS ANGELES, Oct. 23, 2026 /PRNewswire/ -- The Law Offices of Frank R. Cruz today announced a class action lawsuit against Baidu, Inc. ("Baidu" or the "Company") (NASDAQ: BIDU) on behalf of investors who acquired the Company's securities from November 18, 2025 to August 17, 2026. Filed on September 14, 2026, the case is Rosewood Funeral Home, Inc. v. Baidu, Inc. et al., U.S. District Court for the Southern District of New York, Case No. 26-cv-08012.

If you lost money on Baidu, Inc. securities, submit your Baidu, Inc. loss information by November 13, 2026 to learn about participating in the lawsuit.

Baidu, Inc. class action timeline

• Class period begins: November 18, 2025
  
  
• Class period ends: August 17, 2026
  
  
• Complaint filed: September 14, 2026
  
  
• Lead plaintiff motion deadline: November 13, 2026

What happened?

On February 26, 2026, before the market opened, the Company reported fourth quarter and full year 2025 financial results, revealing that total revenue fell more than 4% year over year for the fourth quarter to RMB32.74 billion (or $4.68 billion) and fell more than 3% year over year for the full year to RMB129.079 billion (or $18.458 billion). However, Baidu management assured investors its "AI-Powered Business" grew 48% year over year to RMB40 billion for fiscal year 2025, mitigating this transition.

On this news, the price of Baidu American Depositary Shares ("ADS") fell $7.50 per share or 5.65%, to close at $125.15 per share on February 26, 2026, on unusually heavy trading volume.

Then on August 18, 2026, before the market opened, the Company reported second quarter 2026 financial results, revealing that Baidu General Business revenue fell 4% year over year to RMB25.2 billion (or $3.71 billion), with Legacy Business revenue falling 23% year over year to RMB10.4 billion and total Online Marketing Services revenue falling 19% year over year to RMB13.1 billion. Critically, the Baidu Core AI-powered business fell 8% quarter over quarter to RMB12.5 billion (or $1.86 billion), its year-over-year growth having decelerated from 49% in the first quarter of 2026 to 25%, and its largest component, AI Cloud Infra, having fallen 17% quarter over quarter from RMB8.8 billion to RMB7.3 billion.

On this news, the price of Baidu ADS fell $13.25 per share, or 12.73%, to close at $90.87 on August 18, 2026, thereby further injuring investors.

What is the Baidu, Inc. lawsuit about?

The Baidu, Inc. securities lawsuit alleges that, between November 18, 2025 and August 17, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Baidu, Inc.'s business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) the Company had overstated the ability of its AI business to mitigate rapid declines in its legacy online marketing business; (2) as a result, the Company's revenue was reasonably likely to decline; and (3) as a result, defendants' positive statements about Baidu, Inc.'s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

"According to the complaint filed against Baidu, Inc., the Company, among other things, did not disclose that the Company had overstated the ability of its AI business to mitigate rapid declines in its legacy online marketing business. The November 13, 2026 deadline is a key date for Baidu, Inc. investors who want a voice in how this case moves forward," said Frank R. Cruz of The Law Offices of Frank R. Cruz.

What should Baidu, Inc. investors do now?

The Law Offices of Frank R. Cruz can help Baidu, Inc. investors evaluate potential claims to recover their losses.

Investors who want to serve as lead plaintiff in the Baidu, Inc. class action must file a motion with the Court by November 13, 2026. For more information, visit the Baidu, Inc. case page, email [email protected], or call 310-914-5007.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

Investors may retain counsel of their choice. Baidu, Inc. investors who bought during the class period may also take no action and remain absent class members. No class has been certified yet in the Baidu, Inc. case.

Questions and answers about the Baidu, Inc. lawsuit

Who is eligible? Investors who bought Baidu, Inc. securities between November 18, 2025 and August 17, 2026 and lost money may be class members, and may seek lead plaintiff appointment by November 13, 2026.

What does a lead plaintiff do? The lead plaintiff is appointed by the court to represent all class members and direct the Baidu, Inc. class action.

Must I be lead plaintiff to share in a recovery? No, Baidu, Inc. investors can take no action and remain absent class members.

How are attorneys' fees handled? The Law Offices of Frank R. Cruz works on contingency, so investors pay no attorneys' fees unless there is a recovery, and any fees require court approval.

About The Law Offices of Frank R. Cruz

The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.

Prior results do not guarantee a similar outcome.

Related links

• Baidu, Inc. case page, The Law Offices of Frank R. Cruz
• Complaint: Rosewood Funeral Home, Inc. v. Baidu, Inc. et al., U.S. District Court for the Southern District of New York
• press release
• Baidu, Inc. SEC filings index, EDGAR
• The Law Offices of Frank R. Cruz

Follow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW

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SOURCE The Law Offices of Frank R. Cruz, Los Angeles