BOSTON, MA / ACCESSWIRE / April 16, 2020 / Thornton Law Firm LLP is investigating potential securities claims on behalf of investors of IQIYI INC (NASDAQ:IQ) resulting from allegations that IQ may have issued materially misleading business information to the investing public. Investors who purchased iQiyi securities are encouraged to visit https://www.tenlaw.com/cases/IQ. Investors may also contact Thornton Law Firm at shareholder@tenlaw.com, or call 617-531-3917. Investors outside the USA, including derivative investors, are particularly encouraged to contact Thornton Law Firm to discuss their potential recovery rights.
FOR MORE INFORMATION, VISIT: https://www.tenlaw.com/cases/IQ
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.
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." Wolfpack surveyed 1563 iQiyi users within IQ's target demographic in China during October and November 2019 and found that approximately 31.9% of IQ users have access to its VIP-only content through their memberships with IQ's partners. Wolfpack estimates IQ inflated its 2019 revenue by approximately RMB 8-13 billion, or 27%-44%.
The company pushed back against the report and said it believes it contains "numerous errors, unsubstantiated statements and misleading conclusions and interpretations."
IQ stock dropped nearly 5% on April 14, 2020 on extraordinary volume and is trading down in today's pre-market.
If you are an investor that suffered losses in IQ, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact the Thornton Law Firm's shareholder rights team at http://www.tenlaw.com/cases/IQ, by email at shareholder@tenlaw.com, or calling 617-531-3917.
FOR MORE INFORMATION: https://www.tenlaw.com/cases/IQ
Thornton Law Firm's securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
CONTACT:
Thornton Law Firm LLP
State Street Financial Center
1 Lincoln Street
Boston, MA 02111
www.tenlaw.com/cases/IQ
SOURCE: Thornton Law Firm LLP
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https://www.accesswire.com/585383/IQIYI-INVESTOR-ALERT-Investigation-Into-Potential-Investor-Rights-Claims
