Securities Fraud Suit Filed Against Alibaba Over AI Misrepresentations

California, (Newsfile Corp. - September 18, 2026) - A securities fraud class action lawsuit has been filed against Alibaba Group Holding Limited (BABA) and certain of its executive officers, alleging violations of the Securities Exchange Act of 1934. The lawsuit, captioned Wistisen v. Alibaba Group Holding Limited, et al., No. 1:26-cv-06654 (S.D.N.Y.), accuses Alibaba and its executives of misrepresenting and failing to disclose adverse facts regarding the company's business.

The class period for the lawsuit is defined as June 26, 2025, to June 24, 2026. Hagens Berman Sobol Shapiro LLP, a plaintiffs' rights complex litigation firm, is urging investors who purchased or acquired Alibaba securities during this period and suffered significant financial losses to contact the firm regarding potential recoveries and lead plaintiff rights.

According to the lawsuit, Alibaba and certain executives made false and/or misleading statements and failed to disclose that: - Under the National Defense Authorization Act (NDAA), any entities directly or indirectly controlled by or affiliated with the Chinese Ministry of Industry and Information Technology (MIIT) were considered a Chinese military company. - Alibaba was directly or indirectly controlled by or affiliated with the MIIT. - The risk of Alibaba carrying out distillation attacks against third-party AI models was not a mere hypothetical or inadvertent, but ongoing. - As a result, Defendants' public statements about Alibaba's business, operations, and prospects were materially false and/or misleading at all relevant times.

The truth regarding Alibaba's regulatory exposure and illicit business practices was revealed through a series of partial corrective disclosures: - On June 8, 2026, the U.S. Department of Defense added Alibaba to its list of Chinese military companies under the NDAA due to its ties to the MIIT. This news caused Alibaba ADSs to fall $4.69 per share, or 3.9%, over two trading sessions. - On June 24, 2026, Bloomberg reported that Anthropic alerted U.S. officials that Alibaba fraudulently accessed Anthropic's Claude AI models via thousands of fake accounts to execute unauthorized "distillation" attacks to train its own models. This news caused Alibaba ADSs to fall $4.73 per share, or 4.7%, to close at $95.07 on June 25, 2026.

Hagens Berman's investigation into Alibaba's alleged AI securities fraud found that the company misled shareholders about its artificial intelligence capabilities while secretly conducting a massive industrial espionage campaign to close the gap.

If you purchased or acquired Alibaba securities between June 26, 2025, and June 24, 2026, and suffered significant financial losses, you have until October 5, 2026, to ask the court to appoint you as lead plaintiff. You do not need to seek lead plaintiff status to share in any potential recovery. To learn more about your legal options, you can submit your information to Hagens Berman, visit www.hbsslaw.com/baba, call Reed Kathrein at 844-916-0895, or email [email protected].

Whistleblowers with non-public information regarding Alibaba are encouraged to contact Hagens Berman. Under the SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.