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Robbins LLP Warns of Class Action Lawsuit Against Baidu, Inc.

Robbins LLP, dedicated to shareholder rights, recently issued a reminder to investors about a class action lawsuit involving Baidu, Inc. (NASDAQ: BIDU). This lawsuit pertains to claims made by individuals and entities who purchased Baidu's securities, including call options, between November 18, 2025, and August 17, 2026. This legal action comes in light of allegations that Baidu, known for being the leading internet search engine in China, overstated its AI business's capabilities to counterbalance declines in its established online marketing services.

Context of the Lawsuit

Baidu's core business, its Online Marketing Services, accounted for roughly 53.1% of its total revenue during the third quarter of 2025, but this revenue saw a decline of 17.6% compared to the same quarter in the previous year. Despite these concerning figures, Baidu's leadership maintained an optimistic outlook about their AI business, claiming it would significantly offset the downturn in online marketing sales.

Basis for the Complaint

The newly filed complaint asserts that Baidu's executives failed to disclose critical information regarding the ineffectiveness of their AI initiatives in bridging the revenue gap left by the dwindling online marketing sector. Key allegations include:

• - Exaggeration of AI Business Impact: The lawsuit claims that Baidu overstated the ability of its AI-driven growth to mitigate the stark declines in its main revenue-generating activities.
• - Revenue Misleading Statements: Investors were reportedly misled about the sustainability and growth prospects of Baidu's revenues, with omitted details indicating a likelihood of continued revenue drops.
• - Materially Misleading Statements: The complaint contends that positive remarks by Baidu's leaders about the company’s performance lacked sound evidence and should have been adequately backed by factual data.

Stock Price Declines

The financial health of Baidu became a point of concern when, on February 26, 2026, the company reported a drop in both quarterly and annual revenues. Specifically, its total revenues fell over 4% for the fourth quarter, culminating in figures reported at RMB32.74 billion ($4.68 billion) for that quarter, and a build-up to RMB129.079 billion ($18.458 billion) for the full fiscal year. Despite claims of a 48% growth in their AI business to RMB40 billion, Baidu stocks still faced a significant drop, with shares falling by $7.50, or 5.65%.

In reporting its second quarter results on August 18, 2026, Baidu revealed an even more troubling financial narrative, indicating a 4% decrease in general business revenue from the previous year, alongside a marked decline in revenue from legacy business segments. This prompted an immediate market reaction, with shares dropping by a staggering $13.25, or 12.73%, to a closing price of $90.87 per share.

Participant Eligibility

The class action seeks to represent investors who were impacted between the specified dates. Those who experienced financial losses during this period may have rights under federal securities laws to join the lawsuit.

Lead Plaintiff Role

In the context of class actions, a lead plaintiff is an investor chosen by the court to represent the entire class's interests. Importantly, investors do not need to assume the lead role to participate in any financial recovery resulting from the lawsuit.

Costs of Participation

Engagement in the class action comes without financial risk; Robbins LLP operates on a contingency fee basis. This arrangement means that investors will not incur any fees unless the case successfully resolves.

How to Get Involved

Investors interested in learning more about the class action related to Baidu, Inc. should reach out to Robbins LLP. Additional information can be obtained by contacting their office via email or phone. The firm, renowned for its commitment to shareholder rights, emphasizes the duty of companies to provide investors with transparent and accurate information, reinforcing market integrity.

Contact information for Robbins LLP:

• - Email: [email protected]
• - Phone: (800) 350-6003
• - Website: www.robbinsllp.com

Robbins LLP has carved a niche as a leader in shareholder litigation, fighting for the rights of investors and successfully reclaiming over a billion dollars for shareholders over the years.

This alert serves as a critical reminder for investors to remain vigilant and engaged regarding the companies they support and invest in, encouraging proactive steps in the face of potentially misleading corporate communications.