Major win for Alibaba investors
The U.S. Court of Appeals for the Second Circuit issued a significant ruling in favor of investors in Alibaba’s IPO, reversing a district court decision that had dismissed their securities fraud claims. The Court held that the investors adequately alleged that Alibaba made misleading statements in its offering materials by failing to disclose a meeting where senior Chinese officials threatened the company with massive financial penalties for counterfeit sales on its online marketplaces. Read the decision here.
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