Alibaba to Pay $250 Million to Settle U.S. Lawsuit Over Counterfeit Products

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING: Tsing Micro Raises Over 2 Billion Yuan in State-Backed Round as China Ramps Up AI Chip Push; China’s AI Chip Leaders Ride IPO Wave Amid Drive for Tech Self-Sufficiency

LATEST: China’s AI Chip Leaders Ride IPO Wave Amid Drive for Tech Self-Sufficiency; Tsing Micro Raises Over 2 Billion Yuan in State-Backed Round as China Ramps Up AI Chip Push; Synthetic Biology at Scale Could Reshape Food and Materials Systems, Expert Says; ByteDance in Talks With Smartphone Makers to Embed AI Assistant; Lenovo Executive Urges AI Startups to Take On Tech Giants; Infinigence AI Raises 500 Million Yuan to Expand Heterogeneous Computing Platform; Alibaba’s Quark Unit Launches AI Glasses Powered by Qianwen Model; Pony AI Plans to Triple Robotaxi Fleet to 3,000 by 2026 as Revenue Jumps; China’s Semiconductor Software Push Gains Traction Amid U.S. Curbs; Alibaba Scales Back Retail Spending, Dismisses AI Bubble Fears; Huawei Slashes Flagship Phone Price Amid Slowing Shipments; China’s CXMT Takes Aim at Global Leaders With High-End DDR5 Memory Chips; Alibaba’s Profit Plunges 72% on Costly Foray Into Instant Retail; Xiaomi, Founder Stem Stock Rout With $115 Million Buyback; Analysis: Soaring Legacy Chip Prices Spark Windfall — and Risk — Across Supply Chain; Alibaba, Ant Race to Catch Rivals in China’s AI App Boom; New Flight System Targets ‘Blind Spots’ in China’s Low-Altitude Economy; Cover Story: The AI Boom’s Unsettling Paradox; AI Keeps China, U.S. From Decoupling Despite Trade Tensions, Insiders Say; Wingtech Demands Return of Nexperia Control After Dutch Freeze Pause

By Tang Ziyi / Apr 30, 2019 02:45 PM / Finance

Photo: IC Photo

E-commerce giant Alibaba Group said on Monday that it will pay $250 million to settle a U.S. lawsuit against it for not disclosing a regulatory warning in China regarding sales of counterfeit products that was made shortly before its 2014 initial public offering (IPO).

The lawsuit, which has been pending since January 2015, came after China’s State Administration of Industry and Commerce released a white paper alleging the company allowed trademark-infringing products to be sold on its platform. The document was an account of a meeting between Alibaba and the commerce authorities in July 2014, two months before the company's $25 billion IPO in New York.

The document was withdrawn by the administration within the day, but sparked market concerns and led to many investors dumping the company's American depositary shares.

The company said in a securities filing on Monday that it expects the settlement to "bring to an end all pending securities litigation against the company."

Share this article

Open WeChat and scan the QR code