Shares of iQIYI  (IQ) – Get Report rose Monday after the Chinese online entertainment company said an internal review had refuted a short seller’s allegations that it inflated revenue and user numbers.

It also said it will continue to cooperate with a Securities and Exchange Commission inquiry.

Iqiyi American depositary receipts recently traded at $23.49, up 2.8%. The stock has climbed 11% year to date.

In April, short seller Wolfpack Research accused iQIYI, which competes with Tencent  (TCEHY) , of inflating its 2019 revenue by some $1.13 billion to $1.98 billion, or between 27% and 44%.

Iqiyi, which is 56% owned by Chinese internet titan Baidu  (BIDU) – Get Report, also inflated its expenses, the prices it pays for content, acquisitions and other line items to burn off fake cash positions and hide the fraud from investors and auditors, Wolfpack said.

The SEC requested financial and operating records dating to Jan. 1, 2018, as part of a probe of issues raised by the short seller.

“The SEC’s Division of Enforcement is seeking the production of certain financial and operating records dating from Jan. 1, 2018, as well as documents related to certain acquisitions and investments that were identified in a report issued by short-seller firm Wolfpack Research in April 2020,” iQIYI said in an April statement.

As for now, “the company is unable to predict the duration, outcome or impact of the SEC investigation,” it said.

Baidu ADRs recently traded at $125.44, up 0.7%. They have gained 5% so far this year. Tencent ADRs were 1.4% higher at $68.14.

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General Motor
s hasn’t closed its deal to take an 11% stake in Nikola, the startup maker of hydrogen- and battery-powered trucks, and continues to assess the situation following accusations that founder Trevor Milton lied about Nikola’s technology and misled investors.

“Our transaction with Nikola has not closed,” GM spokeswoman Julie Huston-Rough said. “We are in discussions with current Nikola management and will provide further updates when appropriate or required.”

GM and Nikola announced plans to work together on Sept. 8, triggering a 41% surge for shares of the newly public Phoenix-based company. Under the potential 10-year deal, Nikola would use GM’s new Ultium lithium-ion battery system and Hydrotec fuel cells, their first commercial application. GM is to “engineer, homologate, validate and manufacture” the Nikola-designed Badger pickup that’s powered by batteries and fuel cells. In exchange, GM is to receive newly issued Nikola stock that was worth $2 billion at the time the deal was announced. The Detroit-based automaker will also be able to appoint one member to Nikola’s company’s board.

Two days after that alliance was announced, Nikola was hit by accusations of fraud and misrepresentation in a sensational report by Hindenburg Research, a financial research firm run by analyst Nate Anderson. Among its allegations, the “breakthrough” battery system Milton said the company was working on last year doesn’t exist and Nikola claimed to have designed technology and vehicle components purchased from other manufacturers as its own. “We have never seen this level of deception at a public company, especially of this size,” said Anderson, who has a short position in Nikola shares.

Milton resigned as Nikola’s executive chairman on Sept. 20 and was replaced by Steve


JPMorgan Chase will pay a record $920 million to resolve a criminal investigation by three federal agencies over its role in the alleged manipulation of precious metal and Treasury markets, federal regulators said on Tuesday.

Key Facts

JPMorgan agreed to a settlement that resolves investigations by the Justice Department, Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

As part of the deal, the bank will admit to wrongdoing and pay a record fine of $920 million, according to a statement from the CFTC on Tuesday.

The fine is the largest ever imposed on a bank for spoofing, a type of market manipulation where traders flood markets with orders they don’t actually execute with the intention of creating an illusion of demand.

The practice was banned in 2008 after the financial crisis, and in recent years federal regulators have ramped up efforts to crack down on market manipulation.

The charges against JPMorgan were for “manipulative and deceptive conduct and spoofing that spanned at least eight years and involved hundreds of thousands of spoof orders in precious metals and U.S. Treasury futures contracts,” according to the CFTC.

The order finds that JPMorgan’s illegal trading “significantly benefited” the bank while it “harmed other market participants.”

In an accompanying statement, CFTC commissioner Dan Berkovitz said that he opposed his agency’s ruling that JPMorgan’s actions “should not result in any disqualifications under the ‘bad actor’ provisions of the securities laws.”

Crucial Quote

“For eight years, a group of traders at JPMorgan systematically ‘spoofed’ precious metals and Treasury futures markets by entering hundreds of thousands of orders with the intent to cancel them before execution,” Berkovitz said. “The commission’s order

House Speaker Nancy Pelosi blasted President Donald Trump on Monday over a New York Times report detailing how he has largely avoided paying income taxes and that he has not paid any income taxes in 10 of the past 15 years.

The New York Times sifted through more than two decades of Trump’s tax returns and found that he only paid $750 in federal income taxes in both 2016 and 2017. The Times report also alleges that Trump paid no income taxes at all in 10 of the previous 15 years largely because he reported losing more money than he earned.

“Let’s come back to what we take an oath to protect and defend. This president is the commander in chief. He has exposure to the tune of hundreds of millions of dollars. To whom? The public has a right to know,” Pelosi said in an interview Monday with MSNBC.

“This president appears to have over $400 million in debt. To whom? Different countries? What is the leverage they have? So for me, this is a national security question,” she said.

The Times also reported that Trump has more than $300 million in loans coming due within the next few years that he is personally responsible for repaying.

Trump said Sunday that the story was “totally fake news” and “made up,” although he acknowledged that he “didn’t know anything about the story” ahead of its publication, which came moments before his news conference began.

When asked about the report that he paid $750 in federal income tax in 2016 and 2017, Trump said he has “paid a lot of money in state” taxes, although he did not specify how much.

In a series of tweets Monday morning, Trump said that the information was “illegally obtained” and that he “paid many