Pomerantz Law Firm Announces the Filing of a Class Action Against Youku Tudou, Inc. and Certain Officers -- YOKU
March 25 2015 - 5:24PM
Pomerantz LLP has filed a class action lawsuit against Youku Tudou,
Inc. ("Youku" or the "Company") (NYSE:YOKU) and certain of its
officers. The class action, filed in United States District
Court, Southern District of New York, and docketed under
15-cv-2258, is on behalf of a class consisting of all persons or
entities who purchased Youku securities between February 27, 2014
and March 19, 2015, inclusive (the "Class Period"). This
class action seeks to recover damages against Defendants for
alleged violations of the federal securities laws under the
Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Youku securities during
the Class Period, you have until May 25, 2015 to ask the Court to
appoint you as Lead Plaintiff for the class. A copy of the
Complaint can be obtained at www.pomerantzlaw.com. To
discuss this action, contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
Youku operates as an Internet television company in the People's
Republic of China. Its Internet television platform enables
consumers to search, view, and share video content across various
devices.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or
misleading statements and/or failed to disclose that: (1) the
Company improperly recognized revenue for multi-element
arrangements; (2) the Company improperly recorded certain
nonmonetary transactions to exchange online broadcasting rights of
video content with other online video broadcasting companies at the
carrying values of the broadcasting rights transacted, instead of
the properly-accounted fair value; (3) the Company improperly
accounted for its licensed content as long-lived assets; (4) the
Company lacked adequate internal controls over financial reporting;
and (5) as a result of the foregoing, the Company's financial
statements were materially false and misleading at all relevant
times.
On Tuesday, March 17, 2015, the Company announced that it would
release its fourth quarter results on Thursday, March 19, 2015,
raising red flags by giving investors only two days-notice to
prepare for YOKU's earnings announcement.
On March 19, 2015, the red flags materialized as the Company
reported a net loss of $51.3 million, compared to $4 million in the
same quarter of 2013. Moreover, YOKU disclosed that the SEC
is investigating certain aspects of the Company's past accounting
practices relating to revenue recognition for multi-part deals,
accounting of "non-monetary exchanges of licensed content" and the
classification of licensed content as long-lived assets. The
Company also announced that it is now "evaluating the impact to its
2014 and historical financial statements."
In reaction to this news, YOKU's stock price dropped nearly 11%,
from a March 19, 2015 closing price of $15.15 per share, to close
at $13.50 on March 20, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida,
and San Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L. Pomerantz, known as the dean of the
class action bar, the Pomerantz Firm pioneered the field of
securities class actions. Today, more than 70 years later, the
Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of
fiduciary duty, and corporate misconduct. The Firm has recovered
numerous multimillion-dollar damages awards on behalf of class
members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
Youku Tudou Inc. American Depositary Shares, Each Representing 18 Class A Ordinary Shares. (NYSE:YOKU)
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