NEW YORK -- (Business Wire)
Robbins
Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/alibaba/)
today announced that a class action has been commenced in the United
States District Court for the Southern District of New York on behalf of
purchasers of Alibaba Group Holding Limited (“Alibaba”) (NYSE:BABA)
American Depositary Shares (“ADSs”) during the period between October
21, 2014 and January 28, 2015 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff’s counsel, Samuel
H. Rudman or David
A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or
via e-mail at djr@rgrdlaw.com. If
you are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/alibaba/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint charges Alibaba and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Alibaba is a
China-based online and mobile commerce company in retail and wholesale
trade, as well as cloud computing and other services.
The complaint alleges that during the class period, Defendants issued
materially false and misleading statements regarding the soundness of
Company’s business operations, the strength of its financial prospects
and concealing substantial ongoing regulatory scrutiny. Specifically,
the complaint alleges that Alibaba failed to disclose that Company
executives had met with China’s State Administration of Industry and
Commerce (“SAIC”) in July 2014, just two months before Alibaba’s $25+
billion initial public offering in the United States (the “IPO”), and
that regulators had then brought to Alibaba’s attention a variety of
highly dubious – even illegal – business practices. In the IPO, Alibaba
and certain “selling shareholders” sold more than 368 million ADSs at
$68 each. The complaint alleges that selling shareholders included two
of Alibaba’s co-founders, Jack Ma and Joseph Tsai, each of whom sold
millions of shares. The complaint also alleges that throughout the Class
Period, Alibaba’s ADSs continued trading at ever-increasing,
artificially inflated prices reaching a Class Period high of $120 each
in intraday trading on November 13, 2014 and that in November 2014, the
Company raised another $8 billion in a debt offering.
The complaint further alleges that on January 28, 2015, before the
opening of trading, various members of the financial media reported that
SAIC had released a white paper accusing Alibaba of engaging in the very
illegal conduct disclosed to Alibaba executives in July 2014. On this
news, the complaint alleges that the price of Alibaba ADSs declined
unusually high trading volume. Then, the complaint alleges, on January
29, 2015, before the market opened, Alibaba issued a press release
announcing its financial results for the quarter ended December 31,
2014. The complaint alleges that revenue growth missed the target
defendants had led the investment community to expect and that profits
declined 28% from Alibaba’s fourth quarter 2013 results. According to
the complaint, the Company blamed an inability to monetize growing
transactions on its mobile platforms, where advertising is less
profitable than on personal computers. As a result of these disclosures,
the complaint alleges that the price of Alibaba ADSs plummeted further
and collectively the two drops erased more than $11 billion in market
capitalization from the ADSs Class Period high.
Plaintiff seeks to recover damages on behalf of all purchasers of
Alibaba ADSs during the Class Period (the “Class”). The plaintiff is
represented by Robbins Geller, which has expertise in prosecuting
investor class actions and extensive experience in actions involving
financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and
international institutional investors in contingency-based securities
and corporate litigation. The firm has obtained many of the largest
securities class action recoveries in history, including the largest
securities class action judgment. Please visit http://www.rgrdlaw.com
for more information.
Contacts:
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman or David A.
Rosenfeld, 800-449-4900
djr@rgrdlaw.com
Source: Robbins Geller Rudman & Dowd LLP
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