The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired Alibaba Group Holding Limited (“Alibaba” or the “Company”) (NYSE: BABA) securities between June 26, 2025 and June 24, 2026, inclusive (the “Class Period”). Alibaba investors have until October 5, 2026 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR ALIBABA INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@frankcruzlaw.com, by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.
What Happened?
On June 8, 2026, the U.S. Department of Defense released an updated list identifying Chinese military companies. Alibaba was included in the list due to its direct or indirect control by or affiliation with the MIIT.
On this news, Alibaba share prices dropped $4.69, or approximately 3.9%, over two trading days to close on June 10 at $115.38 on June 10, 2026, thereby injuring investors.
Then, on June 24, 2026, Bloomberg published an article titled “Anthropic Accuses Alibaba of ‘Illicitly’ Accessing AI Models”. The article stated, in relevant part, that “Anthropic PBC accused Chinese technology giant Alibaba Group Holding Ltd. of waging a large-scale effort to ‘illicitly’ access its Claude artificial intelligence model using thousands of fraudulent accounts that undermine the US AI developer’s decision to keep its products out of China. “Anthropic said that a campaign by operators linked to Alibaba’s Qwen AI lab targeted Claude’s most prized capabilities, including software engineering and agentic reasoning, according to a letter that the AI startup sent to several US senators and White House officials.” The article concluded that “Anthropic warned that Alibaba and other Chinese labs are making systematic and unauthorized use of results from leading US models to develop a rival generation of chatbots.”
On this news, the price of Alibaba ADSs fell $2.80 per ADS, or 2.7%, to close at $99.80 per ADS on June 24, 2026, thereby injuring investors further.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) under the National Defense Authorization Act (the “NDAA”), any entities directly or indirectly controlled by or affiliated with the MIIT were considered a Chinese military company; (2) Alibaba was directly or indirectly controlled by or affiliated with the MIIT; (3) the risk of Alibaba carrying out distillation attacks against third-party AI models was not a mere hypothetical or inadvertent, but ongoing; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Alibaba securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Century City, CA 90067
Telephone: 310-914-5007
Email: info@frankcruzlaw.com
Visit our website at: www.frankcruzlaw.com
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View source version on businesswire.com: https://www.businesswire.com/news/home/20260806194379/en/
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