YAHOO! : Kendall Law Group Announces Class Action Lawsuit Against Yahoo! Inc. on Behalf of Shareholders
06/07/2011| 02:05pm US/Eastern
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Kendall
Law Group, a national securities firm led by a former federal judge
with attorneys that include a former U.S. Attorney, announces a lawsuit
filed on behalf of shareholders against Yahoo! Inc. (NASDAQ: YHOO) for
alleged violations of the Securities Exchange Act of 1934 concerning
false and misleading statements regarding Yahoo's business prospects.
A class action lawsuit was filed in the United States District Court,
Northern District of California on June 6, 2011. Yahoo shareholders who
purchased stock between April 19, 2011 and May 13, 2011 are urged to
contact the Kendall Law Group for more information at 877-744-3728 or by
email at skendall@kendalllawgroup.com.
Any shareholder who purchased YHOO stock during this time period may
move the Court to serve as a plaintiff in this class action. If you wish
to serve as lead plaintiff, you must move the Court for appointment by
August 5, 2011. A lead plaintiff is a class member who acts on behalf of
other class members in directing the litigation. Your ability to share
in any recovery is not affected by the decision to serve as a lead
plaintiff.
On May 10, 2011, Yahoo disclosed that its $1 billion investment in a
strategic partnership with Alibaba Group Holdings Limited, China's
largest e-commerce company, had likely been severely impaired by the
misappropriation of Alipay, Alibaba's most valuable asset, from Alibaba
to another private company, controlled by Alibaba's Chairman, Jack Ma.
On May 15, 2011, Yahoo announced that Alibaba, Yahoo and Softbank
Corporation were "engaged in and committed to productive negotiations to
resolve the outstanding issues related to Alipay in a manner that serves
the interests of all shareholders as soon as possible." News reports
indicate that Alibaba received $46 million for Alipay's assets, which
securities analysts valued at $5 billion.
The complaint alleges that Yahoo was informed no later than March 31,
2011 that Alipay's structure had been shifted from Alibaba, therefore
reducing the value of Yahoo's investment in Alibaba by billions of
dollars. The complaint also alleges that Yahoo failed to develop a
strategy to recover the value it had in Alibaba, knowing that Chinese
regulations regarding foreign ownership had been anticipated to change
as far back as 2009, which would require Yahoo or Alibaba to divest
themselves of Alipay. As a result of the alleged misstatements and
omissions, Yahoo's stock traded at artificially inflated prices during
the class period.
Kendall Law Group was founded by a former federal judge, includes a
former United States Attorney, prosecutors and securities lawyers who
are experienced in complex securities litigation. The firm has been
counsel in numerous merger and acquisition cases nationwide, including
some of the largest transactions in the United States.
Kendall Law Group LLP
Scott Kendall, 214-744-3000
877-744-3728
Toll Free
214-744-3015 Facsimile
skendall@kendalllawgroup.com
www.kendalllawgroup.com
© Business Wire 2011
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