Robbins LLP: Alibaba Group Holding Limited (BABA) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Alibaba Group Holding Limited (NYSE: BABA) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between October 21, 2014 and January 28, 2015. Alibaba operates as an international online and mobile commerce company.
Alibaba Misrepresents Its Business Practices
According to the complaint, shares of Alibaba fell $4.49 per share, or 4%, to close at $102.94 per share on January 28, 2015. The drop in share price follows the release of details from a July 2014 meeting, two months before the initial public offering, in which China’s State Administration of Industry and Commerce (SAIC) accused Alibaba of engaging in questionable and illegal business practices. These practices include the sale of counterfeit goods, accepting bribes from merchants, and ignoring some vendor practice of faking transactions to improve sales volume. Then, on January 29, 2015, Alibaba shares dropped an additional $8.64 per share, or 9%, to close at $89.81, after the company announced fourth quarter financial results, including that its profits had fallen 28% to $964 million, since fourth quarter 2013.
Alibaba Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.