Robbins LLP is Investigating Allegations that Alibaba Failed to Inform Investors That it Was Considered a Chinese Military Company 

Robbins LLP informs investors that a class action was filed on behalf of all persons and entities who purchased or otherwise acquired Alibaba Group Holding Limited (NYSE:BABA) between June 26, 2025 and June 24, 2026 (the "Class Period").

The complaint alleges that Alibaba failed to inform investors that it was considered a Chinese military company and that it was at risk of being impacted by the U.S.'s crackdown on Chinese military companies.

Why Was Alibaba Sued?

The complaint alleges that Alibaba made materially false or misleading statements regarding its business, operations, and financial condition during the Class Period.

Specifically, the complaint alleges that defendants failed to disclose that:

(1) under the NDAA, any entities directly or indirectly controlled by or affiliated with the MIIT were considered a Chinese military company;

(2) Alibaba was directly or indirectly controlled by or affiliated with the MIIT;

(3) the risk of Alibaba carrying out distillation attacks against third party AI models was not a mere hypothetical or inadvertent, but ongoing; and

(4) as a result, Defendants’ public statements about Alibaba’s business, operations, and prospects were materially false and/or misleading at all relevant times.

Why Did BABA Stock Drop?

Plaintiff contends that on June 8, 2026, after market hours, the U.S. Department of Defense released an updated list identifying Chinese military companies. Alibaba was included in the list due to its direct or indirect control by or affiliation with the MIIT. On this news, Alibaba share prices dropped $4.69, or approximately 3.9%, over two trading days to close on June 10 at $115.38 on June 10, 2026.

Then, on June 24, 2026, Bloomberg published an article titled “Anthropic Accuses Alibaba of ‘Illicitly’ Accessing AI Models”.  The article noted that "Anthropic warned that Alibaba and other Chinese labs are making systematic and unauthorized use of results from leading US models to develop a rival generation of chatbots at a fraction of the cost via a practice known as adversarial distillation." On this news, the price of Alibaba ADSs fell $2.80 per ADS, or 2.7%, to close at $99.80 per ADS on June 24, 2026. The next day, it fell a further $4.73 per ADS, or 4.7%, to close at $95.07 on June 25, 2026.

Who May Be Eligible to Participate in the Alibaba Class Action?

The lawsuit seeks to represent investors who purchased or otherwise acquired BABA securities between June 26, 2025 and June 24, 2026. Investors who suffered losses during that period may have legal rights under the federal securities laws. Submit a form for Information.

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