#United States #New York #Class Action #Levi & Korsinsky #Inc. #Baidu

Important Update for Baidu, Inc. Investors

Levi & Korsinsky, LLP has issued a reminder for those who acquired shares of Baidu, Inc. (NASDAQ: BIDU) securities, including call options. A securities class action lawsuit has been initiated for individuals who purchased these securities between November 18, 2025, and August 17, 2026. This is an important reminder as the deadline for seeking appointment as lead plaintiff is approaching on November 13, 2026.

Background of the Case

The lawsuit alleges that Baidu made misleading claims regarding its AI-powered business's ability to offset declines in its traditional search advertising revenue. In the first quarter of 2026, Baidu proudly announced a year-over-year growth of 49% in its AI revenue, signaling confidence in recovery. However, this optimism proved short-lived as the company reported an 8% decline in AI revenue in the subsequent quarter.

On August 18, 2026, Baidu's shares plummeted to $90.87, marking a one-day drop of $13.25, or 12.73%. This significant drop was attributed to disappointing Q2 2026 results, which showed substantial setbacks in both core AI revenue and its legacy business performance.

Financial Figures at a Glance

To highlight the discrepancies between promises and reality:

• - It was projected that AI revenue would be approximately RMB 10 billion in Q3 2025, showing over 50% growth.
• - By Q1 2026, Baidu claimed its core AI revenue exceeded RMB 13.6 billion, a figure expected to mitigate losses from traditional revenue streams.
• - However, Q2 2026 revealed AI business revenue fell to RMB 12.5 billion, which was an 8% sequential decline.
• - Additionally, the legacy business continued to decline, with reported revenue falling 23% year over year to RMB 10.4 billion.

Legal Implications

The lawsuit stresses the obligation of companies to disclose known risks associated with their financial projections. According to Joseph E. Levi, Esq., “Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections.” The complaint insinuates Baidu misled investors regarding the sustainability of its AI-powered revenue in light of ongoing losses in legacy revenues.

What Should Investors Do?

The deadline for investors to apply as a lead plaintiff is mere weeks away. Those who purchased Baidu shares during the class period may want to collect relevant brokerage records to confirm their purchase details. This includes the quantity of shares purchased and the price paid. Participation in this lawsuit does not require immediate action from those who do not wish to serve as lead plaintiffs, as they may still recover losses without any further effort.

Frequently Asked Questions about the Lawsuit

1. What is the lead plaintiff deadline? The deadline is November 13, 2026, exclusively for those wishing to be lead plaintiffs.
2. What resulted in the significant stock drop? It was primarily related to the disclosure of disappointing earnings and an 8% decline in AI revenue, which contradicted earlier optimistic statements.
3. Am I eligible to recover losses if I sold my shares? Yes, eligibility is determined by the purchase period, so those who sold at a loss within the class period may still be involved.

Investors who believe they are eligible to recover losses can contact Levi & Korsinsky, LLP for a free evaluation of their case. With an experienced team of over 70 professionals, the firm is well-regarded for its success in shareholder rights litigation. The final opportunity to seek appointment as lead plaintiff is fast approaching, making action necessary in the coming weeks.

For more information, contact Joseph E. Levi, Esq. or call (212) 363-7500.

Conclusion

Baidu's shareholders must remain vigilant regarding developments in this case. The next few weeks could prove crucial in determining if previous promises made by the company will hold up under scrutiny. This lawsuit underscores the vital importance of transparency and accountability in corporate communications.