Youku Tudou, Inc.
Robbins Arroyo LLP: Youku Tudou Inc. Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Youku Tudou Inc. (NYSE: YOKU) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between February 27, 2014 and March 19, 2015. Youku operates as an Internet television company in the People’s Republic of China.
Youku Misrepresents Its Business Practices
According to the complaint, shares of Youku dropped $1.65 or 11%, to close at $13.50 on March 20, 2015, following the company’s March 19, 2015 release of its 2014 fourth quarter results. Specifically, Youku revealed a net loss of $51.3 million, compared to $4 million in the same quarter of 2013. Youku also disclosed that it is the subject of a U.S. Securities and Exchange Commission investigation concerning certain aspects of its accounting practices related to: (i) revenue recognition for multi-part deals; (ii) accounting of non-monetary exchanges of licensed content; and (iii) the classification of licensed content as long-lived assets. The complaint further alleges that the company lacked adequate internal control over financial reporting.
Youku Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.