The investors, in a complaint filed in federal court in San Francisco, claim that Yahoo! was failed to tell them by May 10, 2011 that its $1 billion investment in Alibaba was “severely impaired” by the transfer of the payment business, Alipay, to a closely held company controlled by Alibaba Chairman Jack Ma.
Yahoo management was informed no later than March 31 about the restructuring, which reduced the value of the company's investment in Alibaba by billions of dollars, according to the complaint.
According to the suit: Chinese regulations that precipitated the restructuring were anticipated in 2009, requiring “Yahoo or Alibaba to divest themselves of Alipay but Yahoo had failed to develop a strategy to recover the value it had in Alibaba,"
Alibaba in response had said in July 29, 2011 that its two biggest shareholders, Yahoo and Softbank Corp. (9984), Japan's third-biggest mobile carrier, agreed to a compensation deal that may result in Alibaba receiving as much as $6 billion from Alipay. The agreement ended a four-month dispute between Alibaba, China's biggest e-commerce company, and foreign shareholders over the spinoff of Alipay.
Yahoo said previously that the sale of the online payment business to Jack Ma's company last year lacked the approval of the board and was only disclosed to investors in March 2011.
The lawsuit was filed on behalf of the Twin City Pipe Trades Service Association based in Saint Paul, Minnesota.
Dana Lengkeek, a Yahoo spokeswoman, had no immediate comment on August 8, 2011.
The case is Twin City Pipe Trades Pension v. Yahoo! Inc., 11-03870, U.S. District Court, Northern District of California (San Francisco).
Related News:
Alipay relaxed as Yahoo and Alibaba reached to Agreement
Picture worth a 1000 words - Alibaba's new image matching service
-
Western Union shakes hand with AliExpress.com
Posts
0 comments:
Post a Comment