STEVENSON, Md.--(BUSINESS WIRE)--The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Alibaba Group Holding Limited (“Alibaba” or the “Company”) (NYSE: BABA) American Depositary Shares (ADSs) during the period between October 21, 2014 and January 28, 2015, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until March 31, 2015 to seek appointment as lead plaintiff.
If you have suffered a loss from investment in Alibaba ADSs purchased on or after October 21, 2014 and held through the revelation of negative information during and/or at the end of the Class Period, as described below, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html. You may also request more information by contacting Brower Piven either by email at email@example.com or by telephone at (410) 415-6616. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company ADSs during the Class Period. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that Company executives had met with China’s State Administration of Industry and Commerce (“SAIC”) in July 2014, just two months before Alibaba’s $25+ billion initial public offering in the United States (the “IPO”), and that they were informed about a variety of highly suspicious business practices, which threatened the core of Alibaba’s business. In the IPO, Alibaba and two of its co-founders sold more than 368 million ADSs at $68 each.
The complaint further alleges that on January 28, 2015, before the opening of trading, various members of the financial media reported that SAIC had accused Alibaba of engaging in the very conduct disclosed to Alibaba executives in July 2014. On this news, the price of Alibaba ADSs declined on unusually high trading volume. Then, on January 29, 2015, before the market opened, Alibaba issued a press release announcing its financial results for the quarter ended December 31, 2014. The complaint alleges that revenue growth missed the target defendants had led the investment community to expect based on statements during the Class Period and that profits declined 28% from Alibaba’s fourth quarter 2013 results. According to the complaint, the Company blamed an inability to monetize growing transactions on its mobile platforms, where advertising is less profitable than on personal computers. As a result of these disclosures, the complaint alleges that the price of Alibaba ADSs plummeted further and collectively the two drops erased more than $11 billion in market capitalization from the ADSs Class Period high.
According to the complaint, following the Company’s January 29, 2015 announcement, the value of Alibaba ADSs declined significantly.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.