Alibaba Group Holdings Limited Class Action Lawsuit
- Company Name
- Alibaba Group Holdings Limited
- Stock Symbol
- Class Period
- October 21, 2020 to November 3, 2020
- Motion Deadline
- January 12, 2021
- Southern District of New York
The Alibaba Group Holdings Limited class action lawsuit charges Alibaba and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Alibaba securities between October 21, 2020 and November 3, 2020, inclusive (the “Class Period”). The Alibaba class action lawsuit was commenced on November 13, 2020 in the Southern District of New York and is captioned Ciccarello v. Alibaba Group Holdings Limited, No. 20-cv-09568.
Alibaba is an online and mobile commerce company. Alibaba owns a 33% equity interest in Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Group”), a financial technology company that is best known for operating Alipay, one of the largest mobile and online payment platforms. On July 20, 2020, Ant Group announced that it had begun the process of a concurrent initial public offering (“IPO”) on the Shanghai and Hong Kong stock exchanges. On October 26, 2020, Ant Group priced its IPO and was set to raise $34.5 billion, making it the largest public offering in history.
The Alibaba class action lawsuit alleges that, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Ant Group did not meet listing qualifications or disclosure requirements for certain material matters; (2) certain impending changes in the Fintech regulatory environment would impact Ant Group’s business; (3) Ant Group’s IPO was reasonably likely to be suspended; and (4) as a result of the foregoing, defendants’ positive statements about Alibaba’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On November 2, 2020, Financial Times reported that Chinese regulators had met with Ant Group’s controller Jack Ma, executive chairman Eric Jing, and Chief Executive Officer Simon Hu. The article stated that, though regulators did not provide details, “the Chinese word used to describe the interview – yuetan – generally indicate[s] a dressing down by authorities.” The article also included a statement from Ant Group that it would “implement the meeting opinions in depth.” The following day, on November 3, 2020, the IPO was suspended because Ant Group “may not meet listing qualifications or disclosure requirements due to material matters” related to the meeting with regulators the previous day and “the recent changes in the Fintech regulatory environment.” On this news, Alibaba’s share price fell more than 8%, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Alibaba securities during the Class Period to seek appointment as lead plaintiff in the Alibaba class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Alibaba class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Alibaba class action lawsuit. An investor’s ability to share in any potential future recovery of the Alibaba class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Alibaba class action lawsuit or have questions concerning your rights regarding the Alibaba class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Alibaba class action lawsuit must be filed with the court no later than January 12, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.