Last October, iQiyi announced that it had conducted an internal review, which “did not uncover any evidence that would substantiate the allegations.” The company did not immediately respond to a request for comment on the current status of the probe on Wednesday, while the SEC declined to comment.Īn EHang spokesperson told CNN Business on Wednesday that the company “strongly believes that Wolfpack lacks a basic understanding of business and operations,” and that “it would refute the Wolfpack allegation in full” shortly. iQIYI has pushed back on the allegations, but said that it was cooperating with US regulators. The firm alleged massive fraud at the Chinese company, and the SEC opened an investigation into its practices. Luckin Coffee files for bankruptcy in the USĪnd last year, iQIYI, the online streaming provider often referred to as the “Netflix of China,” was also targeted by Wolfpack Research. (Photo by Zhang Peng/LightRocket via Getty Images) Zhang Peng/LightRocket/Getty Images Having completed the management personnel changes in mid July, more than 4000 stores of Luckin coffee shops in China still run business as normal. Luckin coffee, once considered as the competitor of Starbucks in Chinese market, after being exposed to make false data and fake trading, has stopped trading and delisted on NASDAQ on June 29. This month, Luckin filed for bankruptcy in the United States, less than a year after it was delisted from the Nasdaq.Ī barista is working on the bar counter in a Luckin store.

Wolfpack accused the Guangzhou-based startup of making up “its story with a collection of lies about its products, manufacturing, revenues, partnerships, and potential regulatory approval of its purported main business.”ĮHang is just the latest Chinese company trading on US stock exchanges to face increased scrutiny after Luckin Coffee, another upstart from China, admitted to fabricating some of its sales numbers. In a 33-page paper, Wolfpack Research called the company “an elaborate stock promotion, built on largely fabricated revenues based on sham sales contracts.” The company made headlines over the years for its promise of self-flying taxis, and went public in New York in 2019. Zhang Canlong/VCG/Getty ImagesĮHang is an autonomous passenger drone company founded in 2014. A man looking at an Ehang aerial vehicle during a conference last November in Wuhan, China.

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