Alibaba Group Holding Limited (NYSE: BABA) Securities Fraud Class Action

The Alibaba Group Holding Limited class action lawsuit was filed on behalf of those who purchased or otherwise acquired Alibaba Group Holding Limited (“Alibaba”) (NYSE: BABA) securities between June 26, 2025 and June 24, 2026 inclusive (the “Class Period”). Captioned Carl Wistisen v. Alibaba Group Holding Limited, No. 26-cv-06654 (S.D.N.Y.), the Alibaba class action lawsuit alleges that Alibaba and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.

If you lost money as a result of your Alibaba investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at [email protected].

COMPLAINT ALLEGATION SUMMARY:
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) under the U.S. National Defense Authorization Act, any entities directly or indirectly controlled by or affiliated with the MIIT, which is an executive agency of the Chinese government, were classified as a Chinese military company (“CMC”); (2) Alibaba qualified as a CMC under applicable laws and regulations; (3) Alibaba was aware that CMC’s were being targeted by the U.S. government and failed to warn of the risk that it was a CMC; (4) the company’s distillation attacks, a process by which an attacker distills knowledge from a competitors artificial intelligence (“AI”) model into one they control, were being carried out deliberately despite Alibaba’s claiming them as inadvertent; and (5) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

WHY DID ALIBABA’S STOCK DROP?
On June 8, 2026, the U.S. Department of Defense released its updated list identifying CMC’s, which included Alibaba. Upon this revelation, the price of Alibaba stock fell approximately 3.9% over a two-day period.

Then, on June 24, 2026, Bloomberg published an article titled “Anthropic Accuses Alibaba of ‘Illicitly’ Accessing AI Models.” The article revealed, in part, that Alibaba had made a systematic and unauthorized effort to access Anthropic’s AI models using “thousands of fraudulent accounts that undermine the US AI developer’s decision to keep its products out of China.” The article went on with a warning from Anthropic, stating that Alibaba utilized distillation attacks, and that “AI systems built using this method often lack safety guardrails.” Anthropic called on the U.S. government to step up efforts in squashing these practices. On this news, the price of Alibaba shares fell nearly 2.7%, followed by an additional 4.7% the next day.

THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Alibaba securities during the Class Period to seek appointment as lead plaintiff in the Alibaba class action lawsuit. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.