Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Alibaba Group Holding Limited
January 30 2015 - 7:36PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/alibaba/) today announced that a
class action has been commenced in the United States District Court
for the Southern District of New York on behalf of purchasers of
Alibaba Group Holding Limited (“Alibaba”) (NYSE:BABA) American
Depositary Shares (“ADSs”) during the period between October 21,
2014 and January 28, 2015 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member
of this class, you can view a copy of the complaint as filed or
join this class action online at
http://www.rgrdlaw.com/cases/alibaba/. Any member of the putative
class may move the Court to serve as lead plaintiff through counsel
of their choice, or may choose to do nothing and remain an absent
class member.
The complaint charges Alibaba and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Alibaba is a China-based online and mobile commerce company in
retail and wholesale trade, as well as cloud computing and other
services.
The complaint alleges that during the class period, Defendants
issued materially false and misleading statements regarding the
soundness of Company’s business operations, the strength of its
financial prospects and concealing substantial ongoing regulatory
scrutiny. Specifically, the complaint alleges that Alibaba failed
to disclose that Company executives had met with China’s State
Administration of Industry and Commerce (“SAIC”) in July 2014, just
two months before Alibaba’s $25+ billion initial public offering in
the United States (the “IPO”), and that regulators had then brought
to Alibaba’s attention a variety of highly dubious – even illegal –
business practices. In the IPO, Alibaba and certain “selling
shareholders” sold more than 368 million ADSs at $68 each. The
complaint alleges that selling shareholders included two of
Alibaba’s co-founders, Jack Ma and Joseph Tsai, each of whom sold
millions of shares. The complaint also alleges that throughout the
Class Period, Alibaba’s ADSs continued trading at ever-increasing,
artificially inflated prices reaching a Class Period high of $120
each in intraday trading on November 13, 2014 and that in November
2014, the Company raised another $8 billion in a debt offering.
The complaint further alleges that on January 28, 2015, before
the opening of trading, various members of the financial media
reported that SAIC had released a white paper accusing Alibaba of
engaging in the very illegal conduct disclosed to Alibaba
executives in July 2014. On this news, the complaint alleges that
the price of Alibaba ADSs declined unusually high trading volume.
Then, the complaint alleges, on January 29, 2015, before the market
opened, Alibaba issued a press release announcing its financial
results for the quarter ended December 31, 2014. The complaint
alleges that revenue growth missed the target defendants had led
the investment community to expect and that profits declined 28%
from Alibaba’s fourth quarter 2013 results. According to the
complaint, the Company blamed an inability to monetize growing
transactions on its mobile platforms, where advertising is less
profitable than on personal computers. As a result of these
disclosures, the complaint alleges that the price of Alibaba ADSs
plummeted further and collectively the two drops erased more than
$11 billion in market capitalization from the ADSs Class Period
high.
Plaintiff seeks to recover damages on behalf of all purchasers
of Alibaba ADSs during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained many of
the largest securities class action recoveries in history,
including the largest securities class action judgment. Please
visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLPSamuel H. Rudman or David A.
Rosenfeld, 800-449-4900djr@rgrdlaw.com
Alibaba (NYSE:BABA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alibaba (NYSE:BABA)
Historical Stock Chart
From Apr 2023 to Apr 2024