Alibaba investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, 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 payments 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.
The Class Period commences on October 21, 2020 when Alibaba filed a Form 6-K with the SEC. Attached as an exhibit to the Form 6-K was a statement entitled “Ant Group has announced its arrangements for initial public offering and listing.” 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. However, 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 and that although regulators did not provide details, “the Chinese word used to describe the interview – yuetan – generally indicates a dressing down by authorities.” The article also included a statement from Ant Group that it will “implement the meeting opinions in depth.”
Then, on November 3, 2020, Ant Group’s IPO was suspended. Ant Group issued a statement, which stated, in part, “that it was notified by the relevant regulators in the PRC today that its proposed A share listing on the Shanghai Stock Exchange STAR board is suspended as Ant Group may not meet listing qualifications or disclosure requirements due to material matters relating to the regulatory interview of its ultimate controller, executive chairman and chief executive officer by the relevant regulators and the recent changes in the Fintech regulatory environment.”
Following this news, Alibaba’s share price fell $25.27, or 8%, to close at $285.57 per share on November 3, 2020.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors 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) as a result of the foregoing, Ant Group’s IPO was reasonably likely to be suspended; and (4) as a result of the foregoing, the defendants’ positive statements about Alibaba’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you are a member of the class described above, you may no later than January 12, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
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