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BABA: Alibaba ADRs Rally 8% on Chip Export Easing — But $433.5M Ant Lawsuit Still Looms

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Court: S.D. New York

Case: 1:20-cv-09568

Alibaba BABA ADRs surged 8.1% to $116.97 as U.S.-listed Chinese tech stocks rallied following the Biden administration's easing of AI chip export restrictions. The move benefitted major players like Nvidia and AMD, boosting investor confidence in China’s tech rebound.

🚀 What We Know About the Rally

  • Nasdaq Golden Dragon China Index rose 2.8%
  • BABA ADR jumped 8.1% to $116.97
  • GDS Holdings up 7.8%, Kingsoft Cloud soared 18.7%
  • Nvidia and AMD AI chip exports to China partially reinstated
  • Alibaba-backed AI startup Moonshot launched open-source Kimi K2 model
  • Kingsoft Cloud integrated Kimi K2 into its platform

The regulatory easing and open-source innovation are seen as key catalysts reviving sentiment around Chinese internet and cloud stocks.

🧾 But a $433.5M Settlement Still Casts a Legal Shadow

Alibaba is finalizing a $433.5M settlement with investors over allegations it misled them about Ant Group’s regulatory issues leading up to its scuttled IPO.

📆 Timeline Overview

  • Nov 5, 2019: SAMR warns tech firms on antitrust
  • Nov 2, 2020: Ant execs summoned by regulators
  • Nov 3, 2020: IPO halted, BABA drops 8%
  • Dec 24, 2020: Antitrust probe triggers 13% plunge
  • Apr 22, 2022: Shareholders sue Alibaba

💼 Allegations Include

  • Concealing regulatory concerns before Ant’s IPO
  • Misleading compliance and market risk disclosures
  • Understating systemic risks tied to Ant’s lending model

💰 Investor Update

  • Covers 2019–2020 statements and IPO disclosures
  • Payouts expected 8–12 months after court approval

👉 You can check more information about it and file for a payout HERE.

Even as Alibaba rides renewed optimism in AI and cloud, the financial and legal fallout from its Ant Group missteps continues to linger in the background.