Kendall Group PR, 6/07/11
Kendall Law Group has filed a class action lawsuit on behalf of Yahoo shareholders alleging that Yahoo was informed no later than March 31, 2011 that Chinese e-commerce conglomerate Alibaba Group had shifted its third-party payment subsidiary Alipay to another company controlled by Alibaba chairman Jack Ma. Yahoo did not disclose the transfer until May 10, 2011. The lawsuit also alleges that Yahoo failed to develop a strategy to recover the value it had in Alibaba, knowing that Chinese regulations regarding foreign ownership of third-party payment platforms had been anticipated to change as early as 2009, which would require Yahoo or Alibaba to divest themselves of Alipay. As a result of the alleged misstatements and omissions, Kendall Law Group claims that Yahoo's stock traded at artificially inflated prices during the class period.