The Thornton Law Firm announces that a class action lawsuit has been filed on behalf of investors of Alibaba Group Holdings Limited (NYSE: BABA). Investors who purchased BABA stock or other securities between October 21, 2020 and November 3, 2020 may contact the Thornton Law Firm to obtain a copy of the complaint or to discuss the lead plaintiff process.
Interested investors are encouraged to visit: www.tenlaw.com/cases/Alibaba. Investors may email firstname.lastname@example.org or call 617-531-3917. Interested Alibaba investors have until January 12, 2021 to apply to be a lead plaintiff.
The Complaint alleges that Alibaba owns a 33% equity interest in Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Group”), a financial technology company that announced it had begun the process of a concurrent IPO on the Shanghai and Hong Kong stock exchanges.
The case alleges that Alibaba and its senior executives made misleading statements to investors and failed to disclose that: (1) Ant Group did not meet listing qualifications or disclosure requirements for certain material matters; (2) that certain impending changes in the Fintech regulatory environment would impact Ant Group’s business; and (3) that, as a result of the foregoing, Ant Group’s IPO was reasonably likely to be suspended. When the IPO was suspended on November 3, 2020 Alibaba’s stock price fell 8%, allegedly harming investors.
The lawsuit alleges violations of the federal securities laws. The Private Securities Litigation Reform Act of 1995 allows any investor who purchased the securities at issue in the case during the Class Period to seek appointment as a lead plaintiff in the lawsuit. A lead plaintiff acts on behalf of all other investor class members in managing the class action and can select a law firm of their choice to litigate the lawsuit. Serving as a lead plaintiff does not impact an investor’s share in any potential recovery. Investors do not need to be a lead plaintiff to be a member of the class. If investors choose to take no action, they can remain an absent class member.
Interested Alibaba investors have until January 12, 2021 to apply to be a lead plaintiff. The class has not yet been certified. Until certification occurs, investors are not represented by an attorney.