Shares of the Nasdaq-listed company fell 11.6% in pre-market trading on Friday after iQiyi revealed that the U.S. Securities and Exchange Commission had opened an investigation into its practices following a controversial report proving massive fraud at the company. The company said it had already begun its own internal review of the claims, and expected a “positive” outcome.
Wolfpack referred back to Luckin’s saga in its April report, concluding his investigation by stating, “If what we’ve said so far is not about you, we can only say ‘good luck,'” he said.
“We cannot predict the timing, outcome or consequences of the SEC investigation,” it said in a statement.
In an interview with analysts, Chief Financial Officer Xiaodong Wang added that the company began an “internal, independent” review into Wolfpack’s allegations shortly after the report came out.
He moved Thursday to reassure investors, saying the company has built up strong “corporate governance” over the past 10 years.
“We do not know exactly the result and the status now,” he said. “What I can tell you is the voluntary disclosure of this investigation itself actually shows the management’s confidence in the possible results of this internal review.”
.
