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Tripp Levy PLLC Announces That a Lawsuit Has Been Filed Against Yahoo on Behalf of Shareholders

^{Published on 2011-06-07 12:05:19 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Tripp Levy PLLC announces that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Yahoo! Inc. (aYahooa) (NASDAQ:YHOO) common stock during the period between April 19, 2011 and May 13, 2011 (the aClass Perioda).

"engaged in and committed to productive negotiations to resolve the outstanding issues related to Alipay in a manner that serves the interests of all shareholders as soon as possible."

If you wish to serve as lead plaintiff, you must move the Court no later than August 8, 2011. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Tripp Levy at 877-772-3975, or via e-mail at [ contact@tripplevy.com ]. If you are a member of this class, you can view a copy of the complaint as filed. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Yahoo and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Yahoo operates as a digital media company that delivers personalized digital content and experiences across devices and worldwide.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s business prospects. Specifically, defendants failed to disclose that an important corporate asset in China had been transferred at much less than market value. As a result of defendantsa™ false statements and omissions, Yahooa™s stock traded at artificially inflated prices during the Class Period, reaching a high of $18.65 per share on May 6, 2011.

On May 10, 2011, the complaint alleges, Yahoo shareholders learned for the first time that the Companya™s $1 billion investment in a strategic partnership with Alibaba Group Holdings Limited (aAlibabaa), Chinaa™s largest e-commerce company, likely had been severely impaired by the misappropriation of Alibabaa™s most valuable asset, Alipay, an e-commerce payment system, from Alibaba to another private company controlled by Alibabaa™s Chairman, Jack Ma. On May 15, 2011, Yahoo issued a press release regarding Alipay, stating that Alibaba and its major stockholders Yahoo and Softbank Corporation were aengaged in and committed to productive negotiations to resolve the outstanding issues related to Alipay in a manner that serves the interests of all shareholders as soon as possible.a According to news reports, Alibaba received only $46 million for Alipaya™s assets, which securities analysts valued at $5 billion. On this news, Yahooa™s stock collapsed $0.74 per share to close at $15.81 per share on May 16, 2011 a" a decline of 15% from its Class Period high of $18.65 per share.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) Yahoo management had been informed on March 31, 2011, at the latest, that Alipaya™s structure had been shifted from Alibaba, reducing the value of Yahooa™s investment in Alibaba by billions of dollars; and (b) Chinese regulations regarding foreign ownership had been anticipated to change as far back as 2009, which would require Yahoo or Alibaba to divest themselves of Alipay, but Yahoo had failed to develop a strategy to recover the value it had in Alibaba.

Plaintiff seeks to recover damages on behalf of all purchasers of Yahoo common stock during the Class Period (the aClassa). Tripp Levy PLLC specializes in mergers & acquisitions, takeover litigation, shareholder rights, and corporate governance matters in state and federal courts throughout the United States.

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