The Shareholders Foundation announces that an investor, who purchased shares of Alibaba Group Holding Ltd (NYSE:BABA), filed a lawsuit over alleged violations of Federal Securities Laws by Alibaba Group Holding in connection with certain allegedly false and misleading statements made between October 21, 2014 and January 28, 2015.
Investors who purchased a significant amount of shares of Alibaba Group Holding Ltd (NYSE:BABA) between October 21, 2014 and January 28, 2015, have certain options and for certain investors are short and strict deadlines running. Deadline: March 31, 2015. NYSE:BABA investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Alibaba Group Holding Ltd (NYSE:BABA) common shares between October 21, 2014 and January 28, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that that Alibaba Group Holding Ltd allegedly failed to disclose that Alibaba Group Holding Ltd executives had met with China’s State Administration of Industry and Commerce (“SAIC”) in July 2014, just two months before Alibaba Group Holding’s $25+ billion initial public offering in the United States (the “IPO”), and that regulators had then brought to Alibaba Group Holding’s attention a variety of highly dubious – even illegal – business practices.
The plaintiff alleges that in the IPO, Alibaba Group Holding Ltd and certain “selling shareholders” sold more than 368 million ADSs at $68 each and that selling shareholders included two of Alibaba Group Holding Ltd’s co-founders, Jack Ma and Joseph Tsai, each of whom sold millions of shares.
The plaintiff also alleges that between October 21, 2014 and January 28, 2015, Alibaba Group Holding’s ADSs continued trading at ever-increasing, allegedly artificially inflated prices reaching a high of $120 each in intraday trading on November 13, 2014 and that in November 2014, Alibaba Group Holding Ltd raised another $8 billion in a debt offering.
The plaintiff further claims 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 Group Holding Ltd of engaging in the very illegal conduct disclosed to Alibaba executives in July 2014. “For a long time, Alibaba hasn’t paid enough attention to the illegal operations on its platforms, and hasn’t effectively addressed the issues,” the government agency said. “Alibaba not only faces the biggest credibility crisis since its establishment, it also casts a bad influence for other Internet operators trying to operate legally.” Shares of Alibaba Group Holding Ltd (NYSE:BABA) declined to as low as $87.36 per share on January 29, 2015.
On January 29, 2015, before the market opened, Alibaba Group Holding Ltd announced its financial results for the quarter ended December 31, 2014.
The plaintiff claims that that revenue growth missed the target defendants had led the investment community to expect and that profits declined 28% from Alibaba Group Holding Ltd’s fourth quarter 2013 results, and that the Alibaba Group Holding Ltd blamed an inability to monetize growing transactions on its mobile platforms, where advertising is less profitable than on personal computers. Shares of Alibaba Group Holding Ltd (NYSE:BABA) declined to as low as $88.11 per share on January 30, 2015.
On February 17, 2015, NYSE:BABA shares closed at $86.85 per share.
Those who purchased shares of Alibaba Group Holding Ltd (NYSE:BABA) have certain options and should contact the Shareholders Foundation.
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