Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Alibaba Group Holding    BABA

ALIBABA GROUP HOLDING (BABA)
Mes dernières consult.
Most popular
Report
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Alibaba must face renewed lawsuit over IPO: U.S. appeals court

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/06/2017 | 11:30pm CET
FILE PHOTO: A sign of Alibaba Group is seen during the fourth World Internet Conference in Wuzhen

A U.S. appeals court on Tuesday revived a lawsuit accusing Alibaba Group Holding Ltd of defrauding shareholders by concealing a regulatory warning about counterfeiters that the Chinese online retailer had received shortly before going public.

The 2nd U.S. Circuit Court of Appeals in Manhattan ruled 3-0 that a lower court judge erred in dismissing claims by holders of Alibaba's American Depositary Shares and ADS call options against Alibaba, Executive Chairman Jack Ma and others.

Alibaba said it was disappointed by the decision but that the ruling did not determine that Alibaba had violated U.S. securities law.

"We believe our behavior was entirely appropriate, and we intend to defend ourselves vigorously as this litigation progresses," it said in a statement.

The appeals court in the Tuesday opinion said the plaintiffs adequately alleged that Alibaba intended to defraud them but did not rule on the merits of the case.

Alibaba has long faced accusations that its websites are a haven for counterfeiters, including of luxury goods.

Shareholders accused Alibaba of concealing a meeting on July 16, 2014, two months before its $25 billion initial public offering, in which China's powerful State Administration for Industry and Commerce threatened huge fines if Alibaba failed to suppress counterfeiting.

The price of Alibaba's ADS fell 12.8 percent on Jan. 28 and 29, 2015 after the SAIC revealed its concerns about products that were banned, fake or substandard, or infringed trademarks.

In June 2016, Chief Judge Colleen McMahon of the U.S. District Court in Manhattan dismissed the nationwide lawsuit, saying Alibaba had flagged the regulatory risks in its IPO materials.

The appeals court called the SAIC threat "highly material" to investors because it "required Alibaba to choose between giving up an important source of its revenue or risking enormous fines," either of which could hurt results or the IPO's success.

"Given the eventual market reaction to revelation of the information that was concealed at the time of the IPO, its revelation would likely have had a multi-billion dollar negative effect," the appeals court said.

The lawsuit was returned to McMahon for further proceedings.

Robert Kry, a partner at MoloLamken representing the plaintiffs, said: "We're pleased with the decision, and look forward to proving our claims."

The case is Christine Asia Co et al v Ma et al, 2nd U.S. Circuit Court of Appeals, No. 16-2519.

(Reporting by Jonathan Stempel in New York. Additional reporting by Peter Henderson in San Francisco.; Editing by Chizu Nomiyama and David Gregorio)

By Jonathan Stempel

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ALIBABA GROUP HOLDING
09:37a Armani Beauty opens new Tmall store in e-commerce push
08:25a Armani Beauty opens new Tmall store in e-commerce push
01/19 En route to Davos, Macron makes Versailles the place to be
01/19 MASAYOSHI SON : SoftBank telecoms IPO faces headwinds from govt-backed upstarts
01/18 Alibaba launches e-commerce poverty relief program
01/18 Alibaba launches e-commerce poverty relief program
01/17 Alibaba hiring elderly shoppers to test Taobao
01/17 Banks expected to share tiny proportion of mammoth Saudi Aramco IPO
01/17 Alibaba hiring elderly shoppers to test Taobao
01/17 ALIBABA : Fonterra selling fresh milk on Alibaba
More news
News from SeekingAlpha
01/19 Hormel Foods Has Growth - Cramer's Lightning Round (1/18/18)
01/18 Trump-Ma Honeymoon Ends As Alibaba Lands On U.S. Black List
01/18 Game-Changer For Tencent In Tie-Up With Lego
01/17 DISRUPTING THE IPO MARKET : The Spotify Effect
01/17 Logistics Arm IPO A Giant Leap Forward For JD
Financials ( CNY)
Sales 2018 242 B
EBIT 2018 90 766 M
Net income 2018 65 165 M
Finance 2018 144 B
Yield 2018 0,05%
P/E ratio 2018 47,81
P/E ratio 2019 35,33
EV / Sales 2018 11,9x
EV / Sales 2019 8,34x
Capitalization 3 016 B
Chart ALIBABA GROUP HOLDING
Duration : Period :
Alibaba Group Holding Technical Analysis Chart | BABA | US01609W1027 | 4-Traders
Technical analysis trends ALIBABA GROUP HOLDING
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 48
Average target price 1 391  CNY
Spread / Average Target 18%
EPS Revisions
Managers
NameTitle
Yong Zhang Chief Executive Officer & Director
John Michael Evans President & Director
Yun Ma Executive Chairman
Wei Wu Chief Financial Officer
Jian Feng Zhang Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
ALIBABA GROUP HOLDING6.94%471 388
JD.COM10.82%65 532
EBAY0.66%40 143
MERCADOLIBRE8.65%15 248
RAKUTEN INC-7.57%12 502
SHOPIFY INC (US)13.66%11 464