NEW YORK, April 10, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Youku Tudou, Inc. (“Youku” or the “Company”) (NYSE: YOKU ) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-2258, is on behalf of a class consisting of all persons or entities who purchased Youku securities between February 27, 2014 and March 19, 2015, inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Youku securities during the Class Period, you have until May 25, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Youku operates as an Internet television company in the People’s Republic of China. Its Internet television platform enables consumers to search, view, and share video content across various devices.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company improperly recognized revenue for multi-element arrangements; (2) the Company improperly recorded certain nonmonetary transactions to exchange online broadcasting rights of video content with other online video broadcasting companies at the carrying values of the broadcasting rights transacted, instead of the properly-accounted fair value; (3) the Company improperly accounted for its licensed content as long-lived assets; (4) the Company lacked adequate internal controls over financial reporting; and (5) as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
On Tuesday, March 17, 2015, the Company announced that it would release its fourth quarter results on Thursday, March 19, 2015, raising red flags by giving investors only two days-notice to prepare for YOKU’s earnings announcement.
On March 19, 2015, the red flags materialized as the Company reported a net loss of $51.3 million, compared to $4 million in the same quarter of 2013. Moreover, YOKU disclosed that the SEC is investigating certain aspects of the Company’s past accounting practices relating to revenue recognition for multi-part deals, accounting of “non-monetary exchanges of licensed content” and the classification of licensed content as long-lived assets. The Company also announced that it is now “evaluating the impact to its 2014 and historical financial statements.”
In reaction to this news, YOKU’s stock price dropped nearly 11%, from a March 19, 2015 closing price of $15.15 per share, to close at $13.50 on March 20, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com
