Levi & Korsinsky announces that a class action lawsuit has been commenced in the California Superior Court for the County of San Mateo on behalf of investors who purchased Alibaba Group Holding Limited (“Alibaba” or the “Company”) (NYSE: BABA) American Depositary Shares (“ADSs”) pursuant or traceable to the registration statement and prospectus issued in connection with Alibaba’s September 2014 Initial Public Offering.
The Complaint alleges that the Registration Statement contained materially false information and/or omitted material information. In particular, it is alleged that the Registration Statement failed to disclose that Alibaba executives had met with China’s State Administration of Industry and Commerce in July 2014 relating to a variety of illegal business practices. It is also alleged that the Registration Statement did not adequately describe the risk posed by Alibaba’s already occurring violations and illegal practices and the intense regulatory scrutiny thereby, nor the likely and consequent material adverse effects on the Company’s future results and prospects. Lastly, defendants failed to disclose that Alibaba was already the subject of administrative law enforcement proceedings that created imminent and material risks to its business operations, and which likely would have a material effect on its revenue, income and share price, as well as the expected adverse consequences.
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