Investor Rights Focus: Alibaba shareholders who bought BABA American Depositary Shares between June 26, 2025 and June 24, 2026 may have rights under the federal securities laws, following a decline from a Class Period high of $173.68 to $95.07 per ADS.

NEW YORK, Aug. 19, 2026 /PRNewswire/ — Levi & Korsinsky, LLP notifies investors in Alibaba Group Holding Limited (NYSE: BABA) that a securities class action has been filed on behalf of shareholders who purchased or acquired BABA securities between June 26, 2025 and June 24, 2026. Submit your information. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

BABA American Depositary Shares closed at $95.07 on June 25, 2026, down from a Class Period high of $173.68 recorded on October 9, 2025, a decline of approximately $78.61 per ADS, or roughly 45%. The June 2026 disclosure sequence alone accounted for declines of $4.69 (3.9%), $2.80 (2.7%), and $4.73 (4.7%) per ADS. Lead plaintiff applications must be submitted by October 5, 2026.

What Rights Do BABA Purchasers Have?

Investors who bought Alibaba ADSs during the Class Period are automatically members of the proposed class if it is certified. No filing, payment, or court appearance is required to preserve absent class member status. Investors who wish to direct the litigation may separately apply for appointment as lead plaintiff.

The Allegations Behind the Claims

The action alleges that Alibaba’s annual reports omitted that the Company qualified as a “Chinese military company” under Section 1260H(g)(2) of the National Defense Authorization Act for fiscal year 2025 because of its affiliation with the Chinese Ministry of Industry and Information Technology. Plaintiffs contend that a risk disclosure naming other Chinese issuers affected by U.S. restrictions omitted Alibaba’s own exposure. The action further alleges that risk language describing “unauthorized distillation of third-party models” as a perceived or inadvertent possibility was misleading in light of conduct later described publicly.

Key Rights and Facts for BABA Class Members

• Eligibility turns on purchase dates during the June 26, 2025 to June 24, 2026 Class Period, not on current ownership of the ADSs.
• The case is pending in the United States District Court for the Southern District of New York under Sections 10(b) and 20(a) of the Exchange Act.
• The complaint names Alibaba and Chief Executive Officer Eddie Yongming Wu, who signed the Sarbanes-Oxley certifications attached to the annual reports at issue.
• On June 8, 2026, the U.S. Department of Defense released an updated list identifying Chinese military companies that included Alibaba.
• On June 24, 2026, Bloomberg reported that Anthropic PBC accused Alibaba of illicitly accessing its Claude model through 28.8 million exchanges and roughly 25,000 fraudulent accounts.
• Class members who take no action before the deadline may still share in any recovery that is ultimately obtained.

“The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public,” said Joseph E. Levi, Esq. “Alibaba shareholders are entitled to understand what options the federal securities laws give them.”

Act now. Click here to learn more or call (212) 363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the BABA Lawsuit

Q: Who is eligible to join the BABA investor lawsuit? A: Investors who purchased BABA stock or securities between June 26, 2025 and June 24, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What court was the BABA class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: Who are the defendants named in the BABA lawsuit? A: The complaint names Alibaba Group Holding Limited and Chief Executive Officer Eddie Yongming Wu, who signed SEC filings and certified disclosures under Sarbanes-Oxley.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What do BABA investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor’s country of residence.

Q: What if I already sold my BABA shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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