San Francisco, California--(Newsfile Corp. - June 12, 2020) - Hagens Berman urges investors in iQIYI, Inc. (NASDAQ: IQ) who have suffered significant losses to submit their losses now. Only three days remains until the June 15, 2020 lead plaintiff deadline in a securities fraud class action against iQIYI.
iQIYI (IQ) Securities Class Action:
The complaint alleges that Defendants inflated iQIYI's revenue figures, user numbers and operational expenses to cover up other fraud.
Investors began to learn the truth, according to the complaint, on Apr. 7, 2020, when Wolfpack Research published a scathing report, claiming the company was committing fraud well before its 2018 IPO and has continued to do so ever since. Wolfpack estimates that (a) iQIYI inflated its 2019 revenue by 27% - 44%, (b) overstates its user numbers by 42% - 60%, and then (c) inflates its expenses, the prices it pays for content, and other assets and acquisitions in order to burn off fake cash to hide the fraud from its auditors and investors.
This news drove the price of iQIYI ADSs sharply lower during intraday trading on Apr. 7, 2020.
More recently, on May 18, 2020, iQIYI released disappointing 1Q 2020 financial results, disclosing widening quarterly losses of $406.4 million, or 56 cents a share, a 55% increase over the year-ago quarter.
"We're focused on investors' losses and proving iQIYI misled investors about the company's revenues, user numbers, and operational expenses to appear more successful," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of iQIYI and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding iQIYI should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email IQ@hbsslaw.com.
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