News

Alibaba solves USD 250 mln lawsuit

Monday 6 May 2019 11:09 CET | News

Alibaba has settled a USD 250 million US lawsuit that accused the ecommerce company of concealing regulatory warnings about its ability to stop counterfeiting.

The company was accused of securities fraud for failing to disclose a meeting with China’s State Administration for Industry and Commerce in July 2014. This occurred two months before the company’s USD 25 billion initial public offering. However, a spokesperson of the company said Alibaba was glad to have this matter behind it, as prolonged litigation is neither conducive to protecting the interest of their shareholders, nor does it help Alibaba to focus on creating more value for society.

As per Alibaba, the settlement ends all pending securities litigation against the company, its executive officers, and its directors. Despite former concerns, the company has made several leaps towards combating bad actors on the platform. As such, investigations by its Anti-Counterfeiting Alliance members led to counterfeit product seizures worth USD 536.2 million in 2018. Moreover, over 1,200 arrests were made, and 524 counterfeit manufacturing and distribution locations were shutdown.


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Alibaba, lawsuit, counterfeit, regulatory warnings, US, ecommerce, initial public offering, fraud, securities, litigation, shareholders
Categories:
Countries: World