Chinese video streaming giant iQiyi accused of fraud, company says report contains 'misleading conclusions' [CNBC]
JD.com, Inc. - American Depositary Shares (JD)
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Source: CNBC
Yu Gong, founder and CEO of China-based iQiyi, rings the opening bell at Nasdaq MarketSite in Times Square.Spencer Platt | Getty Images News | Getty ImagesChinese video streaming siteLuckin CoffeeWolfpack 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."The company pushed back against the report and said it believes it contains "numerous errors, unsubstantiated statements and misleading conclusions and interpretations."In 2018, iQiyi was spun off from Chinese search giantBaiduU.S. IPOShares of iQiyi briefly plunged 13% to session lows Tuesday after the report, though the stock ended the day up 3% during a volatile session for U.S. stocks, more broadly. Shares fell more than 3% in extended trading.iQiyi allegedly 'overstating' numbersWolfpack Research alleged that iQiyi inflated its 2019 re
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JD
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