Yahoo Execs Clammed Up On Alibaba Blunder: Suit

Law360, New York (July 5, 2011, 5:58 PM EDT) -- Yahoo Inc.'s current and former CEOs knew the web portal's $1 billion investment in Chinese e-commerce giant Alibaba Group Holdings Ltd. was impaired but didn't tell shareholders for six months, an investor alleged Friday in a derivative lawsuit in California.

Plaintiff Debra Salzman's suit names current CEO Carol Bartz and former CEO Jerry Yang, co-founder of Santa Clara, Calif.-based Yahoo, as defendants and seeks damages for breach of fiduciary duty and waste of corporate assets.

The suit comes after Alibaba Group Chairman Jack Ma transferred the...
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