NEW YORK, March 30, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that class action lawsuits were filed in the United States District Court for the Southern District of New York and the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Youku Tudou, Inc. ("Youku" or the "Company") (NYSE:YOKU) between February 27, 2014 and March 19, 2015, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers.
If you purchased Youku stock during the Class Period, you may, no later than May 26, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the Youku Tudou Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com
The complaints allege that throughout the Class Period, Youku and certain of its officers violated the federal securities laws by disseminating false and misleading statements to the investing public. Specifically, the complaints allege that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company recognized revenue improperly 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.
According to the complaints, on March 19, 2015, the Company announced fourth quarter results and reported a net loss of $51.3 million, compared to $4 million in the same quarter of 2013. In addition, Youku 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."
Following this news, Youku'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.
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