(Adds details from decision, accusations, Chinese regulatory
action)
NEW YORK, March 22 (Reuters) - A U.S. judge narrowed a
lawsuit by Alibaba Group Holding Ltd shareholders
accusing the Chinese e-commerce company founded by Jack Ma of
misleading them about its alleged monopolistic practices and a
shelved initial public offering for its Ant Group affiliate.
U.S. District Judge George Daniels in Manhattan on Wednesday
dismissed all claims against Ma, including for insider trading.
He also said shareholders lacked standing to sue over Ant,
which operated the Alipay mobile payment platform and in which
Alibaba had a 33% stake, because the potential $37 billion IPO
did not happen and thus they never bought or sold Ant shares.
Daniels said Alibaba shareholders could sue over the
company's statements that it did not violate anti-monopoly or
unfair competition laws, despite its practice of requiring
merchants to choose only one distribution platform.
Beijing fined Alibaba $2.75 billion in April 2021 for
requiring "merchant exclusivity" to do business.
Daniels said the "continued use of exclusivity practices,
contrary to (Alibaba's) public representations and commitments,
indicates that defendants may not have had a reasonable basis
upon which to assert that their conduct was legal."
The lawsuit was brought by investors who bought Alibaba's
American depositary shares from July 9 to Dec. 23, 2020, and
said they lost money when the Ant IPO was suspended and Chinese
regulators announced an antitrust probe.
Lawyers for the shareholders did not immediately respond to
requests for comment. Lawyers for Alibaba and Ma did not
immediately respond to similar requests.
Ma agreed in January to give up control of Ant.
(Reporting by Jonathan Stempel in New York; Editing by Sandra
Maler)
Messaging: jon.stempel.thomsonreuters.com@reuters.net))
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