Alibaba must cheat shareholders before the IPO litigation

An appellate court in the United States adjudicated on Tuesday a lawsuit alleging Alibaba (BABA.N) cheating shareholders. Alibaba was accused of hijacking a warning from regulators about counterfeit goods prior to listing, thereby cheating shareholders.

The U.S. Federal Circuit Court of Appeals in Manhattan decided with a 3-0 vote that a lower court judge ruled improperly. The lower court dismissed allegations that Alibaba's American Depositary Shares (ADSs) and holders of ADSs options were against Alibaba and its board chairman Jack Ma and other executives.

Alibaba did not immediately comment. For a long time outside has been criticized the company's website is a paradise for holidaymakers, including luxury goods.