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News Brief: Baidu Inc (ADR) (NASDAQ:BIDU) is being accused of copyright infringement by a number of Chinese media companies, as well as the Motion Picture Association of America. The lawsuits, which seek damages of roughly $48.9 million, claim the company illegally allowed access to pirated content through its various online services. In an emailed statement, Baidu rebutted the charges, responding that it "has always attached high importance to the problem of protecting copyrights in the online video industry."
In today's session, the stock is down 0.9% to $148.87 following the news. This pullback highlights recent struggles BIDU has encountered, with the stock off more than 12% from its record peak of $169.75, reached on Oct. 30. Longer term, however, BIDU has put in a solid technical performance, and has tacked on more than 48% year-to-date.
Amid this bout of negative price action, option traders have been increasing their bearish presence in Baidu Inc's (ADR) (NASDAQ:BIDU) options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio has grown to 0.68 from its Oct. 31 reading of 0.36. What's more, the current ratio ranks in the 77th percentile of its annual range, indicating puts have been bought to open over calls at an accelerated clip in recent weeks.