The lawsuit, filed by the Rosen Law Firm, contends that Baidu executives overstated the capacity of their artificial intelligence business to stabilize the company’s financial performance. According to the complaint, these claims masked a foreseeable drop in revenue, leading to material losses for investors when the actual state of the business became public.

Shareholders who held stock during this period may participate in the litigation to seek potential compensation. While the case is currently pending, no class has been formally certified. Investors retain the right to select their own counsel, remain an absent class member, or apply to serve as a lead representative before the court-mandated deadline.