Robbins LLP is Investigating Allegations that Baidu, Inc. Misled Investors Regarding the Ability of its AI Business to Mitigate Rapid Declines in its Legacy Online Marketing Business

Robbins LLP is Investigating Allegations that Baidu, Inc. Misled Investors Regarding the Ability of its AI Business to Mitigate Rapid Declines in its Legacy Online Marketing Business

Shareholder rights law firm Robbins LLP reminds investors that a class action was filed on behalf of persons and entities who purchased or otherwise acquired Baidu, Inc. (NASDAQ: BIDU) securities, including call options, between November 18, 2025 and August 17, 2026, inclusive (the "Class Period"). Baidu is a Chinese technology company that operates the most popular internet search engine in China. The complaint alleges that Baidu, Inc. overstated the ability of its AI business to mitigate rapid declines in its legacy online marketing business. Investors who suffered significant losses during the Class Period may be eligible to participate in the lawsuit and should contact Robbins LLP before the November 13, 2026, lead plaintiff deadline.

Why Was Baidu Sued?

According to the complaint, online Marketing Services is Baidu's core legacy business, which represented approximately 53.1% of total revenues for the third quarter of 2025. However, Online Marketing Services revenue for the third quarter of 2025 fell 17.6% compared to the third quarter of 2024. Despite this, Baidu assured investors that its new Core AI-powered Business growth had, and would continue to, meaningfully mitigate Baidu's Online Marketing Services decline.

The complaint alleges that, during the Class Period, defendants failed to disclose to investors: that the Company had overstated the ability of its AI business to mitigate rapid declines in its legacy online marketing business; that, as a result, the Company's revenue was reasonably likely to decline; and that, as a result, defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Why Did BIDU Stock Drop?

The complaint alleges that on February 26, 2026, Baidu 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.

Then, on August 18, 2026, Baidu 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.

Who May Be Eligible to Participate in the Baidu Class Action?

The lawsuit seeks to represent investors who purchased or otherwise acquired Baidu, Inc. securities between November 18, 2025 and August 17, 2026. Investors who suffered losses during that period may have legal rights under the federal securities laws.

What Is a Lead Plaintiff?

The lead plaintiff is a court-appointed investor who represents the interests of all class members throughout the litigation. Stockholders who wish to lead the class action should contact Robbins LLP for information before the November 13, 2026, lead plaintiff deadline. Serving as lead plaintiff is not required to share in any potential recovery. Investors who do not seek appointment ...