Shareholder Blasts Yahoo Over $1B Chinese Investment

Law360, New York (June 7, 2011, 7:49 PM EDT) -- A shareholder on Tuesday hit Yahoo Inc. with a purported class action in California accusing the digital media company of misleading investors about the profitability of its $1 billion stake in China’s largest e-commerce company.

Yahoo and its top brass defrauded investors by withholding news that strategic partner Alibaba Group Holdings Ltd. shuttled its most valuable e-commerce assets to another company held by Alibaba CEO Jack Ma, decimating the vaunted value of Yahoo’s $1 billion investment in the Chinese company, according to the suit.

As Alibaba’s...
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