IQiyi says internal review found no evidence to substantiate short seller’s fraud allegations

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Chinese streaming-video company iQiyi Inc. announced Monday that it had “substantially completed” its internal review into allegations made by short seller Wolfpack Research and that the review “did not uncover any evidence that would substantiate the allegations.” Wolfpack alleged in April that iQiyi was engaged in fraudulent behavior involving its financial statements. IQiyi said in its Monday release that the internal review was overseen by the company’s “independent audit committee” with assistance rom professional advisors such as “a Big 4 accounting firm that is not the Company’s auditor.” The company said it will “continue to cooperate” with the Securities and Exchange Commission regarding a previously disclosed probe into the company’s practices. Its U.S.-listed shares are up 1.6% in Monday trading. The shares have risen 10% so far this year as the S&P 500 has added 4.9% and as the KraneShanes CSI China Internet ETF has increased 39%.
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