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Alibaba pays 250 million dollars to settle fraud suit

By Robyn Turk

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Chinese e-commerce giant Alibaba has settled a lawsuit over securities fraud with its shareholders. The company will pay 250 million dollars to end the lawsuit, which alleges that Alibaba failed to disclose to its shareholders threats from counterfeiting ahead of its 2014 initial public offering.

Investors had accused Alibaba of hiding meetings with the Chinese State Administration for Industry and Commerce, in which the administration threatened the company with monetary fines if it didn't handle counterfeiting issues on its website.

The settlement of the case was approved in a federal court in the Southern District of New York.

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