DALLAS--(BUSINESS WIRE)--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.