Youku Tudou, Inc. (Nasdaq: YOKU)
A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Youku Tudou, Inc., ("Yoku" or the "Company) (YOKU) securities during the period of February 27, 2014 to March 19, 2015, ("the Class Period").
The complaint alleges that throughout the Class Period, Yoku and certain of its officers violated the federal securities laws by disseminating false and misleading statements to the investing public.
Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company recognized revenue improperly 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. This announcement raised red flags because it gave investors only two days-notice to prepare for Yoku's earnings announcement.
On March 19, 2015, investors fears 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.
If you are a current shareholder and/or purchased stock between February 27, 2014 to March 19, 2015, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.