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Alibaba must face renewed lawsuit over IPO -US appeals court
December 5, 2017 / 3:00 PM / 13 days ago

Alibaba must face renewed lawsuit over IPO -US appeals court

NEW YORK, Dec 5 (Reuters) - A U.S. appeals court revived a lawsuit accusing Alibaba Group Holding Ltd of defrauding shareholders by concealing a regulatory warning prior to its initial public offering about its ability to suppress counterfeiting on its websites.

The 2nd U.S. Court of Appeals in Manhattan on Tuesday said a lower court judge erred in dismissing the complaint by holders of Alibaba’s American Depositary Shares and call options to buy those shares.

Shareholders claimed that Alibaba concealed a meeting on July 16, 2014, two months before the Chinese e-commerce company’s IPO, in which China’s powerful State Administration for Industry and Commerce threatened big fines if counterfeiting continued.

Reporting by Jonathan Stempel in New York Editing by Chizu Nomiyama

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