BABA DEADLINE: Levi & Korsinsky Reminds Alibaba Group Holding Limited Investors of Upcoming Securities Class Action Deadline

Promise vs. Reality: Alibaba's annual reports described unauthorized distillation of third-party AI models as an inadvertent, hypothetical risk while, the complaint alleges, a large-scale campaign against Anthropic's Claude model was already underway.

NEW YORK, September 2, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Alibaba Group Holding Limited (NYSE: BABA) that a class action has been filed on behalf of shareholders who purchased securities between June 26, 2025 and June 24, 2026. Find out if you could qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

BABA American Depositary Shares traded as high as $173.68 on October 9, 2025 and closed at $95.07 on June 25, 2026, a decline of $78.61 per share, or approximately 45%. The last day to move for lead plaintiff is October 5, 2026.

The Promise

The company projected a picture of measured, forward-looking risk. Its 2026 Annual Report on Form 20-F cautioned that AI models "may inadvertently access and reproduce sensitive business or personal information" and that "[e]ven perceived or alleged misuse of personal data or unauthorized distillation of third-party models" could damage trust in its systems. Separately, its fiscal 2025 disclosures flagged that U.S. restrictions had hit other Chinese issuers deemed tied to the Chinese military, while describing Alibaba's own operations as licensed value-added telecommunications services under the Chinese Ministry of Industry and Information Technology.

The Reality

Results revealed a different picture, according to the complaint. On June 8, 2026, the U.S. Department of Defense published an updated list of Chinese military companies that included Alibaba, based on affiliation with the MIIT. On June 24, 2026, Bloomberg reported that Anthropic PBC had accused Alibaba of "illicitly" accessing its Claude AI model. The lawsuit maintains that the distillation described as hypothetical was, in fact, ongoing.

Promise vs. Actual: By the Numbers

• Promised framing: distillation risk described as "inadvertent" and "perceived or alleged." Reported reality: 28.8 million exchanges with Claude between April and June 2026.
• Promised framing: routine MIIT operating licensing for commerce and video services. Reported reality: MIIT affiliation cited in the Defense Department's Chinese military company listing.
• Promised framing: U.S. military-company restrictions presented as a risk borne by other Chinese issuers. Reported reality: Alibaba named on the June 8, 2026 list.
• Reported reality: approximately 25,000 fraudulent accounts allegedly used in the campaign described by Anthropic.
• Investor result: $4.69 decline over two trading days to $115.38; $2.80 (2.7%) to $99.80 on June 24, 2026; a further $4.73 (4.7%) to $95.07 on June 25, 2026.

What the Lawsuit Alleges About the Gap

Plaintiffs assert that the gap between the cautionary language and the conditions alleged to already exist left purchasers paying artificially inflated prices, and that the June 2026 disclosures removed that inflation from BABA's trading price.

"Companies that describe a risk as hypothetical when it is alleged to be ongoing may leave shareholders unable to price what they are actually buying. The allegations here concern both a federal designation and a described AI distillation campaign, and investors are entitled to have those questions tested." -- Joseph E. Levi, Esq.

Submit your information here or call (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Investors who suffered losses have until October 5, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the BABA Lawsuit

Q: What specific misstatements does the BABA lawsuit allege? A: The complaint alleges Alibaba Group Holding Limited made materially false or misleading statements regarding its status as a "Chinese military company" under the FY2025 NDAA due to MIIT affiliation, and regarding whether unauthorized distillation of third-party AI models was hypothetical or ongoing. When the Defense Department listing and the Anthropic allegations reached the market, the ADS price declined.

Q: When did Alibaba Group Holding Limited allegedly mislead investors? A: The Class Period runs from June 26, 2025 to June 24, 2026. The complaint alleges that corrective disclosures in June 2026 revealed information that caused a significant decline in the ADS price.

Q: How much did BABA stock drop? A: BABA fell from a Class Period high of $173.68 to $95.07, a decline of $78.61 per share (approximately 45%), including drops of 3.9%, 2.7% and 4.7% around the June 2026 disclosures. Investors who purchased during the Class Period at allegedly inflated prices may be eligible to seek compensation.

Q: What court was the BABA class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What if I already sold my BABA shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis, with any attorneys' fees and expenses subject to court approval.

CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected]\
Tel: (212) 363-7500\
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP