NEW YORK, April 24, 2015 /PRNewswire/ -- Pomerantz LLP has
filed a class action lawsuit against Youku Tudou, Inc. ("Youku" or
the "Company")(NYSE: YOKU) and certain of its officers.
The class action, filed in United States District Court, Southern
District of New York, and docketed
under 15-cv-2258, is on behalf of a class consisting of all persons
or entities who purchased Youku securities between February 27, 2014 and March 19, 2015, inclusive (the "Class
Period"). This class action seeks to recover damages against
Defendants for alleged violations of the federal securities laws
under the Securities Exchange Act of 1934 (the "Exchange
Act").
If you are a shareholder who purchased Youku securities during
the Class Period, you have until May 25,
2015 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
Youku operates as an Internet television company in the People's Republic of China. Its Internet
television platform enables consumers to search, view, and share
video content across various devices.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or
misleading statements and/or failed to disclose that: (1) the
Company improperly recognized revenue for multi-element
arrangements; (2) the Company improperly recorded certain
nonmonetary transactions to exchange online broadcasting rights of
video content with other online video broadcasting companies at the
carrying values of the broadcasting rights transacted, instead of
the properly-accounted fair value; (3) the Company improperly
accounted for its licensed content as long-lived assets; (4) the
Company lacked adequate internal controls over financial reporting;
and (5) as a result of the foregoing, the Company's financial
statements were materially false and misleading at all relevant
times.
On Tuesday, March 17, 2015, the
Company announced that it would release its fourth quarter results
on Thursday, March 19, 2015, raising
red flags by giving investors only two days-notice to prepare for
YOKU's earnings announcement.
On March 19, 2015, the red flags
materialized as the Company reported a net loss of $51.3 million, compared to $4 million in the same quarter of 2013.
Moreover, YOKU disclosed that the SEC is investigating certain
aspects of the Company's past accounting practices relating to
revenue recognition for multi-part deals, accounting of
"non-monetary exchanges of licensed content" and the classification
of licensed content as long-lived assets. The Company also
announced that it is now "evaluating the impact to its 2014 and
historical financial statements."
In reaction to this news, YOKU's stock price dropped nearly 11%,
from a March 19, 2015 closing price
of $15.15 per share, to close at
$13.50 on March 20, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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visit:http://www.prnewswire.com/news-releases/shareholder-alert--pomerantz-law-firm-reminds-shareholders-with-losses-on-their-investment-in-youku-tudou-inc-of-class-action-lawsuit-and-upcoming-deadline--yoku-300072014.html
SOURCE Pomerantz LLP
