Baidu Hit with Securities Fraud Class Action over AI Growth Claims

A federal class action filed September 14, 2026 in the Southern District of New York (Rosewood Funeral Home, Inc. v. Baidu, Inc. et al., Case No. 26-cv-08012) alleges Baidu misled investors about its AI business's ability to offset declines in legacy online marketing, covering purchases between November 18, 2025 and August 17, 2026, with a lead plaintiff deadline of November 13, 2026. The complaint cites two earnings-driven sell-offs: a 5.65% ADS drop on February 26, 2026 after Q4/FY2025 results, and a 12.73% drop on August 18, 2026 after Q2 2026 results showed Core AI-powered business falling 8% quarter over quarter and AI Cloud Infra down 17%. No class has been certified and Baidu has not commented publicly in the provided materials.