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Alibaba defrauded shareholders before IPO; must face lawsuit : US court

Alibaba said it was disappointed by the decision but that the ruling did not determine that Alibaba had violated US securities law

Reuters  |  NEW YORK 

A US appeals court on Tuesday revived a lawsuit accusing Alibaba Group Holding Ltd of defrauding shareholders by concealing a regulatory warning about counterfeiters that the Chinese online retailer had received shortly before going public. The 2nd US Circuit Court of Appeals in Manhattan ruled 3-0 that a lower court judge erred in dismissing claims by holders of Alibaba's American Depositary Shares and ADS call options against Alibaba, Executive Chairman Jack Ma and others. Alibaba said it was disappointed by the decision but that the ruling did not determine that Alibaba ...

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First Published: Thu, December 07 2017. 10:41 IST
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