Baidu Sued for Investor Fraud Over Failure to Police Content (2)

Baidu Inc., which runs China’s top search engine, was accused in a lawsuit of tanking its stock by failing to abide by the country’s strict internet rules.

Investor Roger Ikeda alleged the company’s stock price suffered a “precipitous decline” -- 4.38% -- after China’s internet regulator ordered it to halt the spread of “low-brow content” that “exerted bad influence to the society.”

Last year, the search giant ran afoul of the regulations when users who searched for information about President Xi Jinping were led to a video about “tooting one’s own horn.”

The proposed class-action complaint was filed Tuesday ...