2nd Circ. Revives Alibaba Securities Class Action Over IPO

The Second Circuit on Tuesday reinstated a putative securities class action against Alibaba Group Holding Ltd. and several executives after finding that a lower court judge improperly dismissed the suit tied to the company's $25 billion initial public offering.

In a summary order, the New York federal appeals court vacated U.S. District Court Judge Colleen McMahon’s decision to dismiss the potentially multibillion-dollar claim against Alibaba and remanded the case for further proceedings.

In particular, the appeals court faulted Judge McMahon for discrediting news reports about an...

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