[ACCESSWIRE]
SAN DIEGO, CA / ACCESSWIRE / January 24, 2017 / The Shareholders Foundation, Inc. announces that a lawsuit is pending in California for certain investors in Alibaba Group Holding Ltd (NYSE: BABA) over alleged Securities Laws violations by Alibaba Group Holding Ltd in connection with the company's September 2014 initial public offering.
Investors, who purchased shares of Alibaba Group Holding Ltd (NYSE: BABA) in the initial public offering in September 2014 from any of the underwriters, have certain options and should contact the Shareholders Foundation at [email protected] or call +1 (858) 779-1554.
Alibaba Group Holding Ltd conducted its initial public offering ("IPO") in September 2014 and sold more than 368 million ADSs at $68 per share.
The plaintiff alleges Securities Laws Violations by Alibaba Group Holding Ltd, certain of its officers and directors, and the underwriters of the IPO. More specifically, the plaintiff claims that that certain statements made by Alibaba Group Holding Ltd in connection with the company's IPO were false and misleading.
The plaintiff says that the registration statement that was filed in connection with company's IPO allegedly contained untrue statements of material fact and omitted to state material facts both required by governing regulations and necessary to make the statements made not misleading. Among other things, the plaintiff claims that the registration statement that was filed in connection with company's IPO allegedly failed to disclose that certain Alibaba Group Holding Ltd executives had met with the China's State Administration of Industry and Commerce ("SAIC") in July 2014, just two months before the IPO in the United States, and that regulators had then notified Alibaba Group Holding Ltd of a variety of illegal business practices that threatened the core of Alibaba's business and that the defendants were required to disclose this material information.
The plaintiff says that in the weeks and months following the IPO the price of Alibaba Group Holding Ltd ADS shares shot up to trade at $ 120 per share, but when the truth of defendants alleged misrepresentations and omissions became known, the price of Alibaba ADS shares suffered sharp declines. Indeed, by September 24, 2015, Alibaba Group Holding Ltd (NYSE: BABA) shares traded below $ 60 per share, a decline of over 50% from the $ 120 per share.
Those who purchased Alibaba Group Holding Ltd (NYSE: BABA) shares should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
[email protected]
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
SOURCE: Shareholders Foundation, Inc.
