A securities class action has been filed against Alibaba Group Holding Limited (BABA) on behalf of persons and entities that purchased or otherwise acquired Alibaba securities between June 26, 2025 through June 24, 2026. This case has been filed in the USDC – SDNY.
Alibaba, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses.
The Alibaba class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) under the National Defense Authorization Act, any entities directly or indirectly controlled by or affiliated with the Chinese Ministry of Industry and Information Technology were considered a Chinese military company; (ii) Alibaba was directly or indirectly controlled by or affiliated with the Chinese Ministry of Industry and Information Technology; (iii) the risk of Alibaba carrying out distillation attacks against third-party AI models was not a mere hypothetical or inadvertent, but ongoing; and (iv) as a result, defendants’ public statements about Alibaba’s business, operations, and prospects were materially false and/or misleading at all relevant times.
On June 8, 2026, after market hours, the U.S. Department of Defense allegedly released an updated list identifying Chinese military companies that included Alibaba due to its direct or indirect control by or affiliation with the Chinese Ministry of Industry and Information Technology.
On this news, the price of Alibaba’s American Depositary Shares (“ADSs”) declined nearly 4%, according to the complaint.
On June 24, 2026, shortly before the markets closed, Bloomberg published an article titled “Anthropic Accuses Alibaba of ‘Illicitly’ Accessing AI Models.” According to the complaint, the article stated in part that “Anthropic said that a campaign by operators linked to Alibaba’s Qwen AI lab targeted Claude’s most prized capabilities, including software engineering and agentic reasoning, according to a letter that the AI startup sent to several US senators and White House officials.” The article allegedly also added that “Anthropic warned that Alibaba and other Chinese labs are making systematic and unauthorized use of results from leading US models to develop a rival generation of chatbots at a fraction of the cost via a practice known as adversarial distillation.”
On this news, the price of Alibaba’s ADSs fell 2.7% on June 24, 2026, and 4.7% further on June 25, 2026, according to the complaint.