NEW YORK, Feb. 11, 2015 (GLOBE NEWSWIRE) -- Wolf Popper LLP has filed a class action lawsuit against Alibaba Group Holding Limited (NYSE:BABA), and certain of its officers, in the U.S. District Court for the Southern District of New York (15-cv-0991), on behalf of all persons who purchased Alibaba's publicly traded American Depositary Shares on a U.S. stock exchange during the period October 21, 2014 through January 28, 2015, and were damaged thereby. This action alleges claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act.
If you are a member of the Class, you may file a motion no later than March 31, 2015 to be appointed a lead plaintiff. A lead plaintiff is a representative party acting on behalf of class members in directing the litigation.
The Complaint charges that defendants made materially false and misleading statements about Alibaba's efforts to combat the sale of counterfeit and other illegal goods through Alibaba internet platforms, downplaying the volume and widespread availability of such goods through its platforms, and misrepresenting the efficacy of its efforts to combat the sale of such goods. Further, defendants issued statements that Alibaba does not benefit from sales of counterfeit goods, let alone rely on them for its business model. Indeed on December 23, 2014, Alibaba's CEO represented that "in the end, counterfeiting hurts Alibaba Group as consumers who receive fake goods may no longer want to shop on our platforms."
Alibaba further failed to disclose that, in July 2014, top Alibaba officers and managers had met with officials from China's State Administration for Industry and Commerce, who had given Alibaba "administrative guidance" that, inter alia, its procedures for preventing and combatting counterfeit goods were grossly inadequate, its employees had taken commercial bribes, and that fictitious transactions were widespread on its platforms.
On January 28, 2015 the SAIC, posted a "white paper" on its website that summarized the administrative guidance that had been given to Alibaba in July 2014.
On the disclosure of the "white paper", Alibaba declined $4.49 per ADS or approximately 4%, to close at $98.45 per ADS on January 28, 2015.
On January 29, 2015, the news website Quartz posted a translation of the section of the SAIC White Paper that specified in detail the manner in which Alibaba had failed to prevent, and even encouraged, the sale of counterfeit and illegal goods, as well as other illegal activity on its affiliated websites.
On this news, combined with disappointing earnings for the quarter ended December 31, 2014, Alibaba declined an additional $8.64 per ADS, or nearly 9%, to close at $89.81 on January 29, 2015.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. The firm's reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. See www.wolfpopper.com