Alibaba and CEO Eddie Yongming Wu Face Securities Class Action Lawsuit in U.S.

Law firm Levi & Korsinsky, LLP has alerted investors of a pending securities class action lawsuit against Alibaba Group Holding Limited and its Chief Executive Officer, Eddie Yongming Wu, filed in the United States District Court for the Southern District of New York. The lawsuit represents purchasers of BABA securities between June 26, 2025, and June 24, 2026. Investors seeking to be appointed lead plaintiff must file their applications by October 5, 2026.

The complaint alleges that CEO Eddie Yongming Wu signed Sarbanes-Oxley certifications attached to annual reports filed on June 26, 2025, and May 20, 2026, attesting to their accuracy despite omissions of material facts. Specifically, filings allegedly failed to disclose Alibaba's potential designation as a "Chinese military company" under the FY2025 NDAA due to its MIIT affiliation. Furthermore, the May 20, 2026 report framed unauthorized distillation of third-party AI models as a hypothetical risk, despite an active adversarial distillation campaign against Anthropic PBC's Claude model.

Alibaba's American Depositary Shares (ADSs) experienced significant declines following public disclosures. On June 8, 2026, the U.S. Department of Defense added Alibaba to an updated list of Chinese military companies, pushing ADSs down to $115.38 by June 10, 2026. On June 24, 2026, Bloomberg reported that Anthropic accused Alibaba of illicitly accessing Claude through roughly 28.8 million exchanges and nearly 25,000 fraudulent accounts. BABA ADSs eventually closed at $95.07 on June 25, 2026, marking a drop of approximately 45.26% from a peak of $173.68 on October 9, 2025.