SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Youku Tudou, Inc. of Class A...
May 11 2015 - 8:30AM
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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