Robbins Umeda LLP Announces an Investigation of Yahoo! Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Yahoo! Inc. (NASDAQGS: YHOO). Yahoo operates as a digital media company that delivers personalized digital content and experiences, across devices and worldwide. The company was founded in 1994 and is headquartered in Sunnyvale, California.
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of Yahoo breached their fiduciary duties to the company by failing to exercise appropriate supervision of Yahoo’s assets and by causing or permitting the company to make improper statements.
On May 10, 2011, Yahoo shareholders learned for the first time that the company’s $1 billion investment in a strategic partnership with Alibaba Group, China’s largest e-commerce company, likely had been severely impaired by the apparent misappropriation of one of Alibaba’s most valuable assets, Alipay, an e-commerce payment system, from Alibaba to another private company controlled by Alibaba’s Chairman, Jack Ma. It has been reported that Alibaba received only $46 million for Alipay’s assets, which has been valued at $5 billion by U.S. securities analyst Brett Hariss of Gabelli & Co. On this news, the trading price of Yahoo common stock collapsed by over 10%, wiping out $3 billion in shareholders’ equity. Yahoo’s officers and directors reportedly were aware of Ma’s planned misappropriation of Alipay, failed to prevent the usurpation of Yahoo’s valuable financial interest in Alipay, and then concealed it from Yahoo shareholders for six months.
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