LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class (the “Class”) comprising purchasers of the securities of Youku Tudou Inc. (“Youku” or the “Company”) (NYSE:YOKU) between February 27, 2014 and March 19, 2015 , inclusive (the “Class Period”). Investors who purchased Youku securities during the Class Period and wish to serve as a lead plaintiff in the class action must move the Court no later than May 25, 2015.
Please contact Casey Sadler at (888) 773-9224 or (310) 201-9150 or at firstname.lastname@example.org to discuss this matter. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
Youku operates as an Internet television company in the People's Republic of China. Its Internet television platform enables consumers to search, view, and share video content across various devices.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements concerning the Company's accounting, compliance and operations. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company improperly recognized revenue for multi-element arrangements; (2) the Company 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; (3) the Company improperly accounted for its licensed content as long-lived assets; (4) the Company lacked adequate internal controls over financial reporting; and (5) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On March 19, 2015, after only two days’ notice of its pending earnings release, the Company reported a net loss of $51.3 million, compared to $4 million in the same quarter of 2013. Moreover, Youku disclosed that the SEC is investigating certain aspects of the Company's past accounting practices relating to revenue recognition for multi-part deals, accounting of "non-monetary exchanges of licensed content" and the classification of licensed content as long-lived assets. The Company also announced that it is now "evaluating the impact to its 2014 and historical financial statements."
On this news, Youku's stock price dropped nearly 11% per share, from a March 19, 2015 closing price of $15.15 per share, to close at $13.50 per share on March 20, 2015
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