On August 19, local time, Rosen law firm, a global investor rights and interests law firm, announced that it had launched a class action lawsuit against Baidu (NASDAQ: BIDU) on behalf of buyers and purchasers who otherwise acquired Baidu securities. According to Rosen law firm, if investors purchase or otherwise acquire Baidu securities between April 8, 2016 and August 13, 2020, they can participate in class action to encourage investors who have lost more than $100000 to contact the law firm. According to the official website of Rosen law firm, baidu was accused of making false or misleading statements during the listing period, as well as failing to disclose the following information: (1) Baidu misrepresented iqiyi’s financial and operating conditions; (2) it failed to control iqiyi; (3) Baidu’s public statement was false or misleading at the relevant time. It is understood that Baidu acquired the controlling right of iqiyi in November 2012. In 2013, baidu acquired PPS, and PPS merged with iqiyi. At the beginning of 2018, iqiyi IPO and listing on Nasdaq, baidu is still a major shareholder of iqiyi. < / P > < p > it is worth noting that on August 14, iqiyi announced that the company was investigated by the US Securities and Exchange Commission (SEC), requiring financial records since January 2018 and referring to the financial content mentioned by short seller Wolfpack. Shortly after Wolfpack’s short report, iqiyi had hired a consultant against the short seller Wolfpack’s charges, but was unable to predict the duration and outcome of the SEC investigation. The internal review of the company is also in progress, and it is impossible to predict the completion time and results of the internal review. On the same day, Yu Zhengjun, baidu CFO, also said at Baidu’s second quarter financial report that Baidu adopted a zero tolerance attitude towards fraud. As a member of iqiyi’s parent company, baidu did not participate in the independent survey, so it was unable to comment on the relevant situation. Yu Zhengjun said that hiring independent external consultants is the best way to quell the accusations. Baidu will take measures to ensure good corporate governance and ensure the interests of all parties. Only in this way can we better develop and utilize the capital market. As early as April 7, iqiyi was shorted by Wolfpack. Wolfpack reported on its website that iqiyi had been involved in fraud long before the IPO and was suspected of financial fraud. Refer to Wolfpack research’s 37 page short report on iqiyi, which mainly focuses on exaggerating the data of daily living users of dau, exaggerating the income and deferring income difference. However, at that time, some people in the industry believed that the short report was far less solid than the short report against lucky. Because Ruixing’s report has a lot of detailed investigation and evidence collection, but iqiyi’s business model is online, it is an Internet company, and comprehensive data is relatively difficult to obtain through legal channels. According to Baidu’s financial report, baidu achieved 26 billion yuan of revenue in the second quarter, a decrease of 1% compared with the same period last year; the net profit attributable to Baidu was 3.6 billion yuan, an increase of 48% compared with the same period of last year; if non GAAP was adopted, the net profit was 5.08 billion yuan, an increase of 40% year-on-year.