Rosen Law Firm opened a securities investigation into Alibaba Group Holding Ltd. over allegations it issued materially misleading business information to investors. The probe follows a Financial Times report that Anthropic accused the Chinese e-commerce giant of illicit access to its Claude AI model, after which Alibaba ADS fell 2.7 percent on June 24.
Rosen Law Firm opened a securities investigation into Alibaba Group Holding Ltd. after its shares fell 2.7 percent on June 24.
The firm is preparing a class action seeking recovery of investor losses on behalf of shareholders who bought Alibaba securities, Rosen Law Firm said in a statement Thursday.
The probe follows a June 24 Financial Times report that Anthropic accused the Chinese e-commerce giant of obtaining illicit access to its Claude AI model by creating fake accounts designed to access the model, which the American company does not offer to Chinese groups. Alibaba American Depositary Shares fell 2.7 percent on that news. Rosen Law Firm is investigating whether Alibaba issued materially misleading business information to the investing public.
The allegations come as Alibaba competes directly with Anthropic and other US labs through its Qwen family of open-source models. The Hangzhou-based company has made AI a core growth driver, investing heavily in cloud and model development to counter slowing e-commerce growth. A finding that it misrepresented its business operations could weigh on investor confidence in that strategy and pressure the stock further, while also raising questions about how Chinese firms access frontier US models.
Rosen Law Firm has recovered billions of dollars for investors and was ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017, with a top-four ranking each year since 2013. In 2019 alone the firm secured more than $438 million for investors. The firm said it achieved the largest-ever securities class action settlement against a Chinese company.
Shareholders who want to serve as lead plaintiff must file motions with the court within the window set by the court, while those who take no action can remain absent class members and still be eligible for any recovery. All representation is on a contingency fee basis, with shareholders paying no fees or expenses.
The investigation adds to scrutiny of Chinese ADR-listed technology companies and could pressure BABA shares if the allegations are substantiated. Investors who purchased Alibaba securities may be eligible for compensation without out-of-pocket fees through a contingency arrangement; the firm is accepting inquiries via attorney Phillip Kim at 866-767-3653. The next catalyst is the court's scheduling of lead plaintiff motions, which will determine how the case proceeds.
This article is for informational purposes only and does not constitute investment advice.
