Baidu, Inc. redefined its revenue reporting to highlight a “Core AI-powered Business” whose figures its own filings described as unaudited internal management data, and a securities class action alleges those disclosures failed to warn that AI growth would not offset a collapsing legacy advertising franchise.

NEW YORK, Sept. 17, 2026 /PRNewswire/ — SueWallSt alerts 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. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

BIDU American Depositary Shares fell $13.25 per share, or 12.73%, to close at $90.87 on August 18, 2026, on unusually heavy volume. Measured from the Class Period high of $162.52 on January 22, 2026, the ADS lost more than $71 per share. Investors seeking appointment as lead plaintiff must file with the Court by November 13, 2026.

What Baidu’s Filings Told Shareholders

Beginning with fourth quarter 2025 results, the Company redefined its reporting to present “Baidu General Business,” divided among a Core AI-powered Business, a Legacy Business, and Others. The fourth quarter earnings press release further stated that the quarterly revenue attributed to those new categories, including the RMB 11.3 billion credited to the AI-powered Business, was “derived from the Company’s internal management accounts and records, which have not been audited.” The annual report presented this “AI-native view” as providing “greater visibility” into the AI portfolio.

Where the Disclosures Allegedly Fell Short

• The headline metric used to reassure shareholders that AI revenue was offsetting legacy erosion came from unaudited internal management accounts, the complaint charges.
• The reclassification moved traditional Search and Feed advertising into a “Legacy Business” line that later fell 23% year over year to RMB 10.4 billion in the second quarter of 2026.
• Risk factor language cautioned only that failure to retain online marketing customers “could” seriously harm results, while marketing revenue had already fallen 17.6% year over year in the third quarter of 2025.
• AI Cloud Infra, Baidu’s largest AI component, subsequently declined 17% quarter over quarter, from RMB 8.8 billion to RMB 7.3 billion.
• Total revenue for fiscal year 2025 had already declined 3% year over year to RMB 129.1 billion, and total Online Marketing Services revenue fell 19% year over year in the second quarter of 2026.

Why the Reclassification Allegedly Mattered to Investors

The complaint challenges the adequacy of disclosures that presented reorganized, unaudited segment data as proof of an AI-led turnaround while, plaintiffs allege, omitting that total revenue was reasonably likely to decline because AI growth was insufficient to absorb the legacy deterioration.

“Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company’s operations. Here, the complaint alleges that unaudited internal segment figures were used to signal that AI revenue was offsetting an advertising decline that had already reached double digits.” — Joseph E. Levi, Esq.

Submit your information now or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. 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: How much did BIDU stock drop? A: Shares fell approximately 12.73%, a decline of $13.25 per share, after the Company disclosed second quarter 2026 results showing its AI-powered business had declined 8% quarter over quarter while Legacy Business revenue fell 23% year over year. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

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 during the Class Period. When second quarter 2026 results showing the AI-powered business itself contracting 8% quarter over quarter were disclosed, the stock price declined sharply.

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 is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What documents do I need 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 my BIDU losses are small, is it still worth contacting a lawyer? A: Yes. There is no minimum loss amount required to participate as a class member.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallSt
Fax: (212) 363-7171

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