Thursday, July 19, 2012

Baidu Off; CCTV Says It Sells Ads To Sites Offering Fake Drugs

Baidu (BIDU) shares are coming under pressure this morning after China’s CCTV reported Sunday that the company and other search engine have profited from the the promotion of 3 Web sites that sell counterfeit drugs, Reuters reports.

Two years ago, CCTV aired a similar report on Baidu selling search ads to unlicensed medical sites, triggering a more than 20% drop in the company’s shares, a hit to earnings and a public apology by the company’s CEO.

BIDU is down $3.17, or 4.1%, to $70.36.

The company s due to report financial results later today.


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