Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Baidu defeats U.S. shareholder lawsuit over China internet law compliance

Stock MarketsApr 08, 2021 01:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A logo of Baidu is seen during the World Internet Conference (WIC) in Wuzhen

By Jonathan Stempel

(Reuters) - A U.S. judge has dismissed a lawsuit accusing Baidu Inc (NASDAQ:BIDU) of defrauding shareholders about its ability to comply with Chinese regulations governing internet content.

In a Wednesday night decision, U.S. District Judge Lucy Koh rejected claims in the proposed class action that 12 statements that Baidu made from March 2019 to March 2020 were false and misleading and inflated the Beijing-based company's share price.

The statements included that the world's largest search engine other than Alphabet (NASDAQ:GOOGL) Inc's Google had "cleaned up" harmful or questionable content such as material related to drugs, gambling and pornography, giving users more confidence and potentially boosting online traffic and revenue.

Koh, based in San Jose, California, also found no proof of an intent to defraud, after the plaintiff Roger Ikeda argued that senior Baidu executives concealed compliance shortfalls to avoid fines and suspensions from the Chinese government.

Lawyers for Ikeda did not immediately respond to requests for comment on Thursday, nor did Baidu's lawyers.

The lawsuit was filed last April, shortly after China's internet regulator Cyberspace Administration of China ordered Baidu to halt the spread of "low-brow content," prompting Baidu to suspend some channels on its mobile app.

Baidu resumed updating the channels two weeks later.

The proposed shareholder class included holders of Baidu's American depositary shares from March 16, 2019 to April 7, 2020. Koh dismissed the lawsuit without prejudice, meaning the plaintiffs can amend their complaint.

The case is Ikeda v Baidu Inc et al, U.S. District Court, Northern District of California, No. 20-02768.

Baidu defeats U.S. shareholder lawsuit over China internet law compliance
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email