- Robyn Turk
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Chinese e-commerce giant Alibaba has settled a lawsuit over
securities fraud with its shareholders. The company will pay 250
million dollars to end the lawsuit, which alleges that Alibaba failed
to disclose to its shareholders threats from counterfeiting ahead of
its 2014 initial public offering.
Investors had accused Alibaba of hiding meetings with the Chinese
State Administration for Industry and Commerce, in which the
administration threatened the company with monetary fines if it didn’t
handle counterfeiting issues on its website.
The settlement of the case was approved in a federal court in the
Southern District of New York.
