The Shareholders Foundation announces that an investor, who purchased shares of Youku Tudou Inc (ADR) (NYSE:YOKU), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Youku Tudou Inc in connection with certain allegedly false and misleading statements made between February 27, 2014 and March 19, 2015.
Investors who purchased a significant amount of shares of Youku Tudou Inc (ADR) (NYSE:YOKU) have certain options and for certain investors are short and strict deadlines running. Deadline: May 25, 2015. NYSE:YOKU 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 Youku Tudou Inc (ADR) (NYSE:YOKU) common shares between February 27, 2014 and March 19, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 27, 2014 and March 19, 2015 Defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that Youku Tudou Inc improperly recognized revenue for multi-element arrangements, that Youku Tudou Inc 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, that Youku Tudou Inc improperly accounted for its licensed content as long-lived assets, that Youku Tudou Inc lacked adequate internal controls over financial reporting, and that as a result of the foregoing, Youku Tudou Inc’s financial statements were allegedly 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, 2014, Youku Tudou Inc announced that “as a result of the routine review by the Securities and Exchange Commission (the “Commission”) of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2013 (“2013 20-F”), the Company received, and responded to, comments and queries from the staff of the Commission regarding certain accounting treatment adopted by the Company in its historical financial statements.” The issues addressed relate to the Company’s recognition of revenue, among other matters. Shares of Youku Tudou Inc (ADR) (NYSE:YOKU) declined to as low as $11.85 per share on March 31, 2015, which is significantly less than its current 52 week high of $29.63 per share.
Those who purchased shares of Youku Tudou Inc (ADR) (NYSE:YOKU) have certain options and should contact the Shareholders Foundation.
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