Rosen Law Firm filed a class-action lawsuit against Baidu on behalf of securities purchasers. The legal action alleges the company made misleading statements and failed to disclose weaknesses in its AI business.
The lawsuit claims Baidu overstated the ability of its AI division to offset declines in traditional online marketing. This challenge arises as the company positions artificial intelligence as its primary engine for growth.
Separately, Baidu detailed ongoing share repurchases in a routine Form 6-K filing with the SEC. The company repurchased 556,100 Class A shares on the Hong Kong Stock Exchange on September 15.