Alibaba's Jack Ma Seeks to Reassure Employees over US Lawsuits

Advertisement
By Reuters | Updated: 21 February 2015 12:31 IST

Alibaba Group Holding Ltd Executive Chairman Jack Ma urged employees to relax about US. lawsuits against the firm over possible failure to disclose information to investors, in a letter to staff posted on his official microblog on Friday.

A series of lawsuits have been filed in the United States after an unusually public fracas with a Chinese regulator last month over the issue of fakes being sold on Alibaba's websites.

Advertisement

"As for the lawsuits that came about from recent events, I ask that Alibaba employees be at ease," Ma said in his annual letter, sent out before Lunar New Year.

"The Group will attach high importance to these, and we will uphold the principles of objectivity, transparency and honesty to handle this."

Advertisement

Since the beginning of the year, Alibaba has faced a number of setbacks, with shares down 16.2 percent. Last month's third-quarter results failed to impress investors after revenue growth missed expectations, initially wiping off more than $25 billion from the e-commerce titan's market value.

Also on Friday, a Chinese antitrust regulator said pricing tactics in the nation's e-commerce sector would be probed to ensure a "fair" market, potentially putting new scrutiny on businesses such as Alibaba and JD.com Inc.

Advertisement

(Also See: Watchdog Tells Alibaba Fakes Threaten China's Reputation)

Last month, the State Administration for Industry and Commerce (SAIC) said in a now-retracted 'white paper' that it had met with Alibaba before the firm's blockbuster New York listing to discuss the issue of fakes sold on its platform, but had withheld publishing any report so as not to affect the initial public offering in September.

Advertisement

Shares fell 4.4 percent the day the SAIC report was published, spurring US. law firms to file lawsuits alleging Alibaba failed to disclose risk factors to investors and thus harming their investments.

"We are monitoring the lawsuits triggered by the so-called 'White Paper' and the related events," said an Alibaba spokeswoman by email on Friday.

"We have always been transparent in our corporate governance and daily business operations, and make our best efforts to protect the interest of each and every shareholder. We will vigorously defend ourselves and our business practices."

In his letter to Alibaba employees, Ma said the lawsuits were an inevitable result of going public, as well as being a Chinese company.

"Almost every large multinational company runs into these kinds of challenges - IBM, Microsoft, Wal-Mart," Ma said.

© Thomson Reuters 2015

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Alibaba, E commerce, Internet, Jack Ma, Lawsuit, US
Advertisement

Related Stories

Popular Mobile Brands
  1. Oppo Find X9 Ultra With 200-Megapixel Periscope Camera Launched Globally
  2. Google Puts Together A-Team to Build Better Coding Models Than Anthropic
  3. Vivo X300 FE Roundup: Expected Price in India, Specifications
  4. Apple's iOS 27 Update Might Drop Support for These iPhone Models
  5. WhatsApp Plus Subscription: What Is It, Pricing, Features and Benefits
  1. NASA Shuts Down Voyager 1 Instrument to Extend Mission Life in Deep Space
  2. Oppo Enco Clip 2 With Open-Ear Design, Up to 40 Hours Total Battery Life Launched Alongside Oppo Watch X3 Mini
  3. Vivo Y6t Launched With 6,500mAh Battery, Snapdragon 4 Gen 2 SoC: Price, Specifications
  4. OCBC Partners Lion Global Investors and DigiFT to Launch Tokenised Gold Fund With GOLDX Token
  5. Oppo Pad 5 Pro Launched With 13,380mAh Battery, Snapdragon 8 Elite Gen 5 SoC Alongside Oppo Pad Mini: Price, Features
  6. Redmi K90 Max Launched With Dimensity 9500 SoC, 8,550mAh Battery and Active Cooling Fan: Price, Specifications
  7. Oppo Find X9 Ultra Launched With Snapdragon 8 Elite Gen 5 SoC, 200-Megapixel Periscope Camera: Price, Specifications
  8. Oppo Find X9s Pro Launched With 200-Megapixel Cameras, 7,025mAh Battery: Price, Specifications
  9. OnePlus Ace 6 Ultra Geekbench Listing Reveals MediaTek Dimensity 9500 Chip, 16GB RAM
  10. Motorola Edge 70 Pro+ Leaked Renders Hint at Design, Five Colour Options
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.