Alibaba Group Holding Limited (BABA) Securities Class Action

Core Allegations

The lawsuit alleges that Alibaba and certain executives misrepresented and failed to disclose adverse facts pertaining to the Company’s business which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:

• Under the National Defense Authorization Act (NDAA), any entities directly or indirectly controlled by or affiliated with the Chinese Ministry of Industry and Information Technology (MIIT) were considered a Chinese military company;
• Alibaba was directly or indirectly controlled by or affiliated with the MIIT;
• The risk of Alibaba carrying out distillation attacks against third- party AI models was not a mere hypothetical or inadvertent, but ongoing; and
• As a result, Defendants’ public statements about Alibaba’s business, operations, and prospects were materially false and/or misleading at all relevant times.

The Truth Emerges

The truth regarding Alibaba’s regulatory exposure and illicit business practices was revealed through a series of partial corrective disclosures:

• June 8, 2026: The U.S. Department of Defense added Alibaba to its list of Chinese military companies under the NDAA due to its ties to the MIIT. On this news, Alibaba ADSs fell $4.69 per share, or 3.9%, over two trading sessions.
• June 24, 2026: Bloomberg reported that Anthropic alerted U.S. officials that Alibaba fraudulently accessed Anthropic’s Claude AI models via thousands of fake accounts to execute unauthorized "distillation" attacks to train its own models. On this news, Alibaba ADSs fell $4.73 per share, or 4.7%, to close at $95.07 on June 25, 2026.

The complaint alleges that as a result of Defendants' misleading statements and omissions, investors suffered substantial losses when the artificial inflation was removed from the stock.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the BABA investigation about?

We are investigating whether Alibaba executives intentionally concealed the company’s regulatory ties and engaged in fraudulent operational practices to mislead the market about its true risk profile and competitive position.

WHAT SHOULD I DO?

I worked at BABA. What should I do?

If you were an employee of BABA, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in BABA, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any BABA investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.