Suit alleges Baidu, Inc. failed to disclose key facts to investors from November 18, 2025 through August 17, 2026; lead plaintiff deadline is November 13, 2026
BENSALEM TOWNSHIP, Pa., Oct. 19, 2026 /PRNewswire/ -- The Law Offices of Howard G. Smith today reported that a securities class action lawsuit is pending against Baidu, Inc. ("Baidu" or the "Company") (NASDAQ: BIDU) on behalf of investors who acquired its securities from November 18, 2025 through August 17, 2026. The Baidu, Inc. case, Rosewood Funeral Home, Inc. v. Baidu, Inc. et al., was filed on September 14, 2026 in the U.S. District Court for the Southern District of New York (Case No. 26-cv-08012).
Investors with losses on Baidu, Inc. securities can contact the Law Offices of Howard G. Smith about the Baidu, Inc. lawsuit before the November 13, 2026 lead plaintiff deadline.
Key deadlines and dates for Baidu, Inc. investors
- Lead plaintiff deadline: November 13, 2026
- Class period: November 18, 2025 through August 17, 2026
- Complaint filed: September 14, 2026
What happened?
On February 26, 2026, before the market opened, the Company reported fourth quarter and full year 2025 financial results, revealing that total revenue fell more than 4% year over year for the fourth quarter to RMB32.74 billion (or $4.68 billion) and fell more than 3% year over year for the full year to RMB129.079 billion (or $18.458 billion). However, Baidu management assured investors its "AI-Powered Business" grew 48% year over year to RMB40 billion for fiscal year 2025, mitigating this transition.
On this news, the price of Baidu American Depositary Shares ("ADS") fell $7.50 per share or 5.65%, to close at $125.15 per share on February 26, 2026, on unusually heavy trading volume.
Then on August 18, 2026, before the market opened, the Company reported second quarter 2026 financial results, revealing that Baidu General Business revenue fell 4% year over year to RMB25.2 billion (or $3.71 billion), with Legacy Business revenue falling 23% year over year to RMB10.4 billion and total Online Marketing Services revenue falling 19% year over year to RMB13.1 billion. Critically, the Baidu Core AI-powered business fell 8% quarter over quarter to RMB12.5 billion (or $1.86 billion), its year-over-year growth having decelerated from 49% in the first quarter of 2026 to 25%, and its largest component, AI Cloud Infra, having fallen 17% quarter over quarter from RMB8.8 billion to RMB7.3 billion.
On this news, the price of Baidu ADS fell $13.25 per share, or 12.73%, to close at $90.87 on August 18, 2026, thereby further injuring investors.
What is the Baidu, Inc. lawsuit about?
The Baidu, Inc. securities lawsuit alleges that, between November 18, 2025 and August 17, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Baidu, Inc.'s business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) the Company had overstated the ability of its AI business to mitigate rapid declines in its legacy online marketing business; (2) as a result, the Company's revenue was reasonably likely to decline; and (3) as a result, defendants' positive statements about Baidu, Inc.'s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
"The lawsuit against Baidu, Inc. alleges that, among other things, the Company failed to tell investors that the Company had overstated the ability of its AI business to mitigate rapid declines in its legacy online marketing business. Baidu, Inc. investors who bought during the class period may be able to pursue their losses, and the November 13, 2026 deadline is where that process begins," said Howard G. Smith of The Law Offices of Howard G. Smith.
Next steps for Baidu, Inc. investors
Baidu, Inc. investors who suffered losses may contact The Law Offices of Howard G. Smith to learn about pursuing their claims.
Lead plaintiff motions in the Baidu, Inc. class action are due to the Court by November 13, 2026. For more information, visit the firm's website, email howardsmith@howardsmithlaw.com, or call (215) 638-4847.
If you purchased Baidu, Inc. securities during the class period, you may retain counsel of your choice, or you may take no action and remain an absent class member. No class has been certified in the Baidu, Inc. case so far.
Common questions from Baidu, Inc. investors
Who is eligible? Investors who acquired Baidu, Inc. securities from November 18, 2025 through August 17, 2026 and suffered losses may qualify for the class in the Baidu, Inc. shareholder lawsuit.
What is the deadline? Lead plaintiff motions in the Baidu, Inc. case are due by November 13, 2026.
Can I recover without being lead plaintiff? Yes, Baidu, Inc. investors may take no action and remain absent class members.
Does it cost anything? The Law Offices of Howard G. Smith works on contingency, so investors pay no attorneys' fees unless there is a recovery, and any fees require court approval.
About The Law Offices of Howard G. Smith
The Law Offices of Howard G. Smith has helped injured investors recover their money for more than 15 years. The firm prosecutes securities fraud, takeover, and derivative litigation against public companies and their officers, directors, and advisors in federal and state courts nationwide, and has helped clients recover hundreds of millions of dollars in losses. Clients speak directly with a lawyer, who will promptly answer any question.
Prior results do not guarantee a similar outcome.
Related links
- Baidu, Inc. case page, The Law Offices of Howard G. Smith
- Complaint: Rosewood Funeral Home, Inc. v. Baidu, Inc. et al., U.S. District Court for the Southern District of New York
- press release
- Baidu, Inc. SEC filings index, EDGAR
- The Law Offices of Howard G. Smith
Contact
The Law Offices of Howard G. Smith
3070 Bristol Pike, Suite 112
Bensalem, PA 19020
Email: howardsmith@howardsmithlaw.com
Telephone: (215) 638-4847
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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