BABA Investor Alert: Alibaba Group Holding Limited Securities Class Action Notice - Contact Levi & Korsinsky

A securities class action alleges Alibaba's own filings described its MIIT licensing and AI "distillation" risks in ways that omitted its status as a designated Chinese military company and an ongoing campaign against a U.S. AI developer's model, as investors watched BABA slide from $173.68 to $95.07.

NEW YORK, Sept. 9, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP reminds purchasers of Alibaba Group Holding Limited (NYSE: BABA) securities of a pending securities class action on behalf of investors who acquired shares between June 26, 2025 and June 24, 2026. See if you could be eligible to recover. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

BABA declined from a Class Period high of $173.68 on October 9, 2025 to $95.07 on June 25, 2026, a drop of $78.61 per share, or approximately 45.26%. Investors have until October 5, 2026 to seek lead plaintiff status.

Chronology of Material Events

June 26, 2025: the 2025 Form 20-F, with SOX certifications, incorporated a Hong Kong annual report stating that the Company's online and mobile commerce businesses require an operating license from China's Ministry of Industry and Information Technology. It is alleged that the same filing warned about U.S. restrictions on Chinese military companies while omitting that the MIIT affiliation placed Alibaba within the FY2025 NDAA definition.

May 20, 2026: the 2026 Form 20-F described "unauthorized distillation of third-party models" as a perceived or inadvertent risk. As set forth in the complaint, a large-scale distillation campaign was already underway.

Timeline of Alleged Disclosure Failures

• June 26, 2025: Class Period opens with the 2025 annual report and accompanying SOX certifications.
• May 20, 2026: AI distillation described in hypothetical, forward-looking terms.
• June 8, 2026: the U.S. Department of Defense publishes an updated Chinese military company list naming Alibaba; shares fall $4.69, or 3.9%, over two trading days to close at $115.38 on June 10, 2026.
• June 24, 2026: Bloomberg reports Anthropic PBC accused Alibaba of "illicitly" accessing its Claude model through 28.8 million exchanges and roughly 25,000 fraudulent accounts; shares close at $99.80, down $2.80, or 2.7%.
• June 25, 2026: shares fall a further $4.73, or 4.7%, to close at $95.07.

"The sequence here matters: this complaint alleges that risk language filed in May 2026 characterized third-party model distillation as hypothetical while the conduct described weeks later was already ongoing. Shareholders are entitled to have annual report disclosures reflect what is actually happening inside a company." -- Joseph E. Levi, Esq.

Calculate your potential recovery or call (212) 363-7500.

INSTITUTIONAL INVESTOR REPRESENTATION — Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the BABA Lawsuit

Q: What specific misstatements does the BABA lawsuit allege? A: The complaint alleges Alibaba made materially false or misleading statements regarding its MIIT affiliation and resulting classification as a Chinese military company under the FY2025 NDAA, and regarding the characterization of unauthorized distillation of third-party AI models as merely hypothetical. When the Department of Defense listing and the Anthropic allegations were reported, the stock 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 significant stock declines.

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 do BABA investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

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 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 no retainer and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are 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