SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment iQIYI, Inc. and against Goldman Sachs Group Inc. and Morgan Stanley of Class Action Lawsuit and Upcoming Deadline – GS; MS | National News
NEW YORK, 29 Dec 2021 / PRNewswire / – Pomerantz LLP Announces that a class action lawsuit has been filed against Goldman Sachs Group Inc. and Morgan Stanley (collectively, the “Defendant”) on behalf of investors of iQIYI, Inc. (“iQIYI” or the “Company”) “) (NASDAQ: IQ.) The class action lawsuit filed in The United States District Court for the southern district of new York, and registered under 21-cv-10999, is on behalf of all investors who hold iQIYI shares concurrently with the illegal transactions of the defendants of. bought or otherwise acquired March 22, 2021 through and including March 29, 2021 (the “Class Period”), pursuant to Sections 20A, 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 USC Sections 78t-1, 78j (b), and 78t (a).
If you are a shareholder who purchased iQIYI stock during the class action period, you have up to January 31, 2022 ask the court to appoint you as the lead plaintiff for the class action. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, extension. 7980. Inquiries by email are encouraged to include their postal address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Archegos Capital Management (“Archegos”), a family office mutual fund, was founded and operated by Sung Kook Hwang (“Hwang”), a former portfolio manager of Tiger Asia Management, a hedge fund he also founded.
Goldman Sachs and Morgan Stanley are global financial services institutions that have served as two of Archegos’ primary brokers, helping the company do business and lending it capital in the form of margin loans.
Archegos held large, concentrated positions in companies such as ViacomCBS Inc. (“ViacomCBS”), Vipshop Holdings Ltd., Discovery Inc., Farfetch Ltd., Gaotu Techedu, Inc., Baidu Inc., iQIYI, and. one Tencent Holdings Ltd. through financial instruments known as total return swaps, the underlying securities being held by banks that broker the investments.
Unbeknownst to investors and regulators, several large brokerage banks, including the defendant, had simultaneously enabled Archegos to gain billions in volatile stocks through swap contracts, dramatically increasing the risk of these concentrated positions.
on March 23, 2021 ViacomCBS announced a new one $ 3 billion offers to fund investments in its streaming service Paramount +, which launched earlier this month.
on March 25, 2021, one of Wall Street’s most influential market research firms, MoffettNathanson, released a report that challenged the value of ViacomCBS, downgraded the stock to “Sell” and set a price target of only. was established $ 55 per share compared to the company $ 85 Offer. “We never thought we would see Viacom[CBS] Trade near $ 100 per share, “the report said.” Obviously, neither does ViacomCBS’s management, “it continued, citing the new share offering.
As a result of that report, ViacomCBS stock slumped, losing more than half its value in less than a week. Indeed, until the close of trading on Friday March 26th 2021, ViacomCBS was worth it $ 48 per share.
This proved extremely problematic for Archegos, who had been trading ViacomCBS on margin. Since Archegos had to hold a certain amount of collateral to please its lenders, and since the value of ViacomCBS stock has plummeted, Archegos needed enough collateral to cover or a margin call (where the lender can force a sell-off of the stock) . to bring the investor back into compliance with the margin requirements) could be triggered.
on March 27, 2021, it was reported that Archegos did not mare and, as a result, more than. had to liquidate $ 20 billion its leveraged equity positions Friday March 26th 2021.
The lawsuit alleges that during the class action period, defendants acquired a large number of iQIYI shares in the week of Jan. March 22, 2021while in possession of essential, non-public information. Later media reports said the defendants dumped large block trades made up of shares in Archegos’ doomed bets, including billions in iQIYI securities, at the end of the year Thursday March 25, 2021before the story of Archegos leaked to the public and gave iQIYI shares a tailspin.
As a result of these sales, the defendants were able to avoid losses totaling billions.
Defendants knew they were prohibited from trading on the basis of this confidential market-moving information or did not know they were prohibited from trading, but traded anyway and sold their iQIYI shares to the plaintiff and other members of the group before the News about Archegos and that announced by iQIYI stocks plummeted.
Pomerantz LLP, with offices in new York, Chicago, The angel, Paris, and Tel Aviv, is recognized as one of the leading law firms in corporate, securities and antitrust litigation. Founded by the late Abraham L. PomerantzKnown as the Dean of the Class Action Chamber, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he founded and fights for the rights of victims of securities fraud, breach of duty of loyalty and corporate misconduct. The company has collected numerous millions of dollars in damages on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP