Alibaba, Execs See Revived Stock Fraud Suit Over IPO Disclosures

Alibaba Group Holdings Ltd. and four of its top executives are back on the hook in an investor suit claiming they made material misrepresentations in connection with Chinese e-commerce giant’s record $25 billion initial public offering in September 2014.

The district court dismissed the would-be class securities fraud suit for various pleading deficiencies, but the U.S. Court of Appeals for the Second Circuit reversed. In a Dec. 5 summary order, it said the defendants’ failure to disclose a meeting with Chinese regulators shortly before the IPO “concealed the true facts” about a significant threat to the company—an omission that rises ...