The Shocking Reason Why Alibaba (BABA) Shares Are Dropping
Author By Sophia VidaPosted on Alibaba could be facing some trouble soon with the U.S. Securities and Exchange Commission.
According to The New York Post, there is at least one Alibaba Group Holding (BABA) whistleblower that’s giving information to the SEC as it investigates the Chinese internet retail giant’s accounting practices.
The SEC is investigating Alibaba’s lack of accounting for partial ownership in a logistics and transport operation called Cainiao Network.
Alibaba has defended this investigation and clarified on page 122 of a 20-F SEC filing.
According to The Post’s Alibaba story, citing an anonymous source: One mole was identified as a ‘high-up’ official at Alibaba ‘who helped initiate the investigation’ earlier this year, according to a source close to the situation.”
Disclaimer: We have no position in Alibaba Group Holding Ltd (NYSE: BABA) and have not been compensated for this article.
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