NEW YORK, March 26, 2015 /PRNewswire/ -- Milberg LLP
announces that a class action lawsuit has been filed in the United
States District Court for the Southern District of New York on behalf of purchasers of Youku
Tudou, Inc., ("Yoku" or the "Company) (NYSE: YOKU) securities
during the period of February 27,
2014 to March 19, 2015, ("the
Class Period").
Yoku is a Chinese internet television company whose platform
allows consumers to view, search, and share video content.
The complaint alleges that throughout the Class Period, Yoku and
certain of its officers violated the federal securities laws by
disseminating false and misleading statements to the investing
public.
Specifically, the Complaint alleges that Defendants made false
and/or misleading statements and/or failed to disclose that:
(1) the Company recognized revenue improperly 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. This
announcement raised red flags because it gave investors only two
days-notice to prepare for Yoku's earnings announcement.
On March 19, 2015, investors fears
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.
If you purchased Yoku shares between February 27, 2014 and March 19, 2015, you may, no later than
May 26, 2015, request that the Court
appoint you lead plaintiff. A lead plaintiff is a class
member that directs the litigation. Your share in any
recovery will not be affected by serving as a lead plaintiff.
You do not need to be a lead plaintiff to recover. You may
retain Milberg LLP, or other attorneys, for this action, but do not
need to retain counsel to recover. If this action is
certified as a class action, class members will be automatically
represented by Court-appointed counsel. The complaint in this
action was not filed by Milberg.
If you would like to learn more about this potential matter,
please contact the following attorney:
Andrei Rado, Esq.
Milberg LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: contactus@milberg.com
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SOURCE Milberg LLP