Disclosure Under Scrutiny: Were Risk Warnings Adequate? Baidu's annual report told investors the Company was "not aware of any trends, uncertainties, demands, commitments or events" reasonably likely to have a material and adverse affect on total revenue, while a securities class action alleges legacy advertising revenue was already deteriorating faster than AI revenue could offset.
NEW YORK, Sept. 16, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Baidu, Inc. (NASDAQ: BIDU) that a securities class action has been filed on behalf of shareholders who purchased securities between November 18, 2025 and August 17, 2026. Submit your information now. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
BIDU American Depositary Shares closed at a Class Period high of $162.52 on January 22, 2026, and closed at $90.87 on August 18, 2026, a decline of $71.65 per ADS, or roughly 44%. The August 18, 2026 single-session drop alone was $13.25 per ADS, or 12.73%, on unusually heavy volume. The lead plaintiff deadline is November 13, 2026.
What the Company Disclosed
SEC filings stated, in the Company's Form 20-F for fiscal year 2025 filed March 17, 2026, that a failure "to retain existing customers or attract new customers for our online marketing services" could seriously harm results. The same annual report advised under Trend Information that the Company was "not aware of any trends, uncertainties, demands, commitments or events" for the year ended December 31, 2025 reasonably likely to have a material and adverse effect on total revenue.
Disclosure Gaps Alleged
The complaint challenges the adequacy of that disclosure language given what was allegedly already occurring inside the business:
- Online Marketing Services revenue had allegedly already fallen 17.6% year over year in the third quarter of 2025, before the Class Period began.
- Full year 2025 total revenue declined 3% year over year to RMB 129.1 billion ($18.46 billion), yet the annual report identified no adverse revenue trend.
- Risk warnings were framed conditionally, using "could" and "may," rather than describing a deterioration the lawsuit contends was already underway.
- AI-powered Business figures used to reassure the market were derived from internal management accounts that the Company noted had not been audited.
- AI Cloud Infra later fell 17% quarter over quarter, from RMB 8.8 billion to RMB 7.3 billion.
- On August 18, 2026, the Company reported that Legacy Business revenue fell 23% year over year and that the AI-powered business itself fell 8% quarter over quarter to RMB 12.5 billion.
Why Generic Warnings May Not Protect
"Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company's operations. Here, the complaint alleges Baidu's annual report reported no adverse revenue trend at a time when legacy advertising revenue was contracting at double-digit rates." -- Joseph E. Levi, Esq.
The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 in the United States District Court for the Southern District of New York.
Find out if you might qualify to recover losses or call (212) 363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the BIDU Lawsuit
Q: What court was the BIDU class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
Q: What specific misstatements does the BIDU lawsuit allege? A: The complaint alleges Baidu, Inc. made materially false or misleading statements regarding the ability of its AI-powered business to mitigate rapid declines in its legacy online marketing business, and failed to disclose that total revenue was reasonably likely to decline, during the Class Period. When the Company reported that Legacy Business revenue fell 23% year over year and that the AI-powered business itself fell 8% quarter over quarter, the stock price declined sharply.
Q: Who are the defendants named in the BIDU lawsuit? A: The complaint names Baidu, Inc. and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.
Q: What do BIDU investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What documents do I need to to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
Q: What if I already sold my BIDU shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
jlevi@levikorsinsky.com\
Tel: (212) 363-7500\
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
