Berkeley, Calif. - Hagens Berman today announced that it is investigating claims against Yahoo (Nasdaq: YHOO) that the company made false and misleading statements to investors. At the same time a class-action lawsuit has been filed against Yahoo alleging violation of the Securities Exchange Act of 1934. Investors who seek to be a lead plaintiff are required to file a motion before August 8, 2011.
The complaint, filed in the United States District Court for the Northern District of California is based upon Yahoo’s admission that it was informed by March 31, 2011 that Alibaba, a company in which Yahoo had purchased a 43 percent share in 2005, had shifted its e-commerce system, Alipay, to another private company without Yahoo’s authorization. Yet, Yahoo did not mention the transfer in its April 19, 2011 quarterly earnings announcement. Yahoo did not inform its investors of the change until on or about May 13, 2011.
“Yahoo executives knew or should have known that the transfer of Alipay could have a material impact on the company’s future prospects,” said Reed R. Kathrein, Partner at Hagens Berman. “Our investigation seeks to uncover who knew about the transfer and whether the failure to disclose this information was a violation federal securities laws.”
As a result of the alleged misleading statements to investors, Yahoo common stock’s price may have been artificially inflated. Investors who purchased stock between April 19, 2011 and May 13, 2011 (the “class period”) are encouraged to contact the Hagens Berman legal team via email at Yahoo@hbsslaw.com.
Mr. Kathrein is leading the firm’s investigation from its San Francisco office and can be reached by phone at 510-725-3000. Additional information is also available at www.hbsslaw.com/yahoo. In order to be considered a lead plaintiff, investors must move the court by August 8, 2011.
About Investor Fraud Practice
Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and asset protection services to individual and institutional investors who have been negatively affected by poor corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair dealing or loyalty. For an in-depth discussion of securities fraud, corporate governance and investor rights, please visit our Investor Fraud website or our Meaningful Disclosure blog.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.
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