BEIJING, August 14 (TMTPOST) — The American depositary receipts (ADSs) of iQiyi, the popular Netflix-style platform in China, slumped as much as 16% intraday Friday after the company revealed it is under investigation from the U.S. Securities and Exchange Commission (SEC). The probe was made following a short-seller firm Wolfpack Research’ report released in April, which alleged iQiyi had committed fraud well before its IPO in 2018 and inflated its 2019 revenue by 8-13 billion RMB, or 27%-44%, by overstating user numbers and expenses. iQiyi at that time denied the allegation and asserted "the report contains numerous errors, unsubstantiated statements and misleading conclusions and interpretations." The SEC is seeking the financial and operating records dating from January 1, 2018, as well as documents related to certain acquisitions and investments identified in Wolfpack’s report, said iQiyi in after-hours trade Thursday. The company also said it is cooperating with the SEC and it had started an internal review into the key allegations in the report.