NEW YORK, NY / ACCESSWIRE / April 8, 2020 / Labaton Sucharow LLP, a leading and award winning investor rights law firm, announces it is developing a proprietary investigation concerning potential securities claims on behalf of shareholders of IQIYI INC (IQ) resulting from allegations that IQ may have issued materially misleading business information to the investing public.
IQ is a streaming platform considered to be the "Netflix of China."
Wolfpack Research, which describes itself as an "activist research and due-diligence firm", released a report on Tuesday, alleging that iQiyi "was committing fraud well before its IPO (initial public offering) in 2018 and has continued to do so ever since."
The company pushed back against the report and said it believes it contains "numerous errors, unsubstantiated statements and misleading conclusions and interpretations."
In 2018, iQiyi was spun off from Chinese search giant Baidu in a U.S. IPO that raised over $2.2 billion. Baidu holds a more than 56% stake in iQiyi. Often dubbed the "Netflix of China", iQiyi has become one of the major content streaming platforms in the country.
Pre-market today, IQ stock was trading down nearly 11%.
If you are a shareholder or option holder that suffered losses in TAL, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll free number (800) 321-0476 or via email at email@example.com or firstname.lastname@example.org
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 http://www.labaton.com.
SOURCE: Labaton Sucharow LLP
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