Alibaba to Pay $250 Million to Settle U.S. Lawsuit Over Counterfeit Products

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING: Unitree to Debut at 61 Billion Yuan Valuation in Closely Watched Shanghai IPO; U.S. Appeals Court Orders Review of Pentagon’s DJI Designation; Alibaba to Sell Gaming Unit as It Sharpens AI Focus

LATEST: U.S. Appeals Court Orders Review of Pentagon’s DJI Designation; Unitree to Debut at 61 Billion Yuan Valuation in Closely Watched Shanghai IPO; Alibaba to Sell Gaming Unit as It Sharpens AI Focus; China’s DJI and Arashi Vision Escalate Battle for 360-Camera Market; Didi Swings to Quarterly Profit, but Overseas Push Weighs on First-Half Results; Z.AI Pushes AI Model With Coding Edge to Rival Anthropic, Open AI; DeepSeek Launches V4-Pro and Raises API Prices by as Much as 1,100%; Tencent Shares Fall as AI Spending Squeezes Profit; Honor’s New Smartphone Doubles as a Robotic Camera Operator; YMTC Overtakes Kioxia by Shipments to Rank No. 3 in Global NAND Market; ModelBest Begins Pre-IPO Tutoring as On-Device AI Competition Heats Up; U.S. Proposes Ban on Domestic Drone Maker Over Alleged DJI Ties; Manus Cuts Ties With Meta as Tencent Emerges as Top Backer; Cautious Regulators Steer China’s Flying Vehicle Industry to Prioritize Cargo Over Commuters; Alibaba Opens Qwen Platform to Outside Developers in Push to Build AI-Agent Ecosystem; Moore Threads Plans Hong Kong Listing to Fuel AI Chip Push; Beyond the Backflips: Unitree Robotics Faces High Expectations Ahead of Shanghai Debut; ByteDance Accepts AI Gap, Sticks With In-House Models; MiniMax Shares Surge After Joining Hong Kong Stock Connect; Chinese Robotics Startup PokeBot Raises Hundreds of Millions of Dollars

By Tang Ziyi / Apr 30, 2019 02:45 PM / Finance

Photo: IC Photo

E-commerce giant Alibaba Group said on Monday that it will pay $250 million to settle a U.S. lawsuit against it for not disclosing a regulatory warning in China regarding sales of counterfeit products that was made shortly before its 2014 initial public offering (IPO).

The lawsuit, which has been pending since January 2015, came after China’s State Administration of Industry and Commerce released a white paper alleging the company allowed trademark-infringing products to be sold on its platform. The document was an account of a meeting between Alibaba and the commerce authorities in July 2014, two months before the company's $25 billion IPO in New York.

The document was withdrawn by the administration within the day, but sparked market concerns and led to many investors dumping the company's American depositary shares.

The company said in a securities filing on Monday that it expects the settlement to "bring to an end all pending securities litigation against the company."

Share this article

Open WeChat and scan the QR code