Yahoo! Inc. under current long term Investor Investigation

June 20, 2011 - PRLog -- An investor in Yahoo shares filed a lawsuit on behalf of those who purchased Yahoo! Inc securities only between April 19, 2011 and May 13, 2011, against Yahoo Inc for allegedly violating Federal Securities Laws.

Meanwhile an investigation on behalf of current long term investors in Yahoo! Inc.  including those who purchased their YHOO shares (also) prior to April 2011 and continue to hold those shares was announced.

If you are a current long term investor in shares of Yahoo! Inc.  and continue to hold those shares, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm on behalf of current long term investors in stocks of Yahoo! Inc. (YHOO) concerns whether certain current and/or former members of Yahoo board of directors and certain executive officers are liable in connection with the alleged Securities Laws violations in the lawsuit filed by investors who purchased YHOO shares only between April 19, 2011 and May 13, 2011.

According to the complaint filed in in the United States District Court for the Northern District of California the plaintiff alleges that Yahoo! Inc. violated the Securities Exchange Act of 1934 by issuing between April 19, 2011 and May 13, 2011 materially false and misleading statements regarding its business prospects.

Yahoo!’s 12months Total Revenue fell from $6.969billio in 2007, respectively $7.208billion in 2008 to $6324billion in 2010. On the other hand its Net Income rose over the same time frame from $639.15million in 2007, respectively $418.92million in 2008 to $1,231million in 2010. For the first quarter in 2011 Yahoo! Inc. reported $1.214billion in Total revenue for the first quarter compared to $1.596billion for the first quarter in 2010. Its Net Income for the first quarter fell from $310.19million in 2010 to $222.99million for the first quarter in 2011.

Specifically, the plaintiff alleges that the defendants failed to disclose that an important corporate asset in China had been transferred at much less than market value.
Shares of Yahoo! Inc. (Public, NASDAQ-YHOO), which traded during 2008 as high as $29.66 and in 2007as high as $33.63, increased from as low as $9.39 in November 08 to as high as $18.65 on May 6, 2011.

On May 10, 2011, the complaint alleges, Yahoo shareholders learned for the first time that Yahoo’s $1 billion investment in a strategic partnership with Alibaba Group Holdings Limited , China’s largest e-commerce company, likely had been severely impaired by the misappropriation of Alibaba Group Holdings Limited’s most valuable asset, Alipay, an e-commerce payment system, from Alibaba Group Holdings Limited to another private company controlled by Alibaba Group Holdings Limited’s Chairman, Jack Ma.
Then on May 15, 2011, Yahoo Inc. issued a press release regarding Alipay, stating that Alibaba Group Holdings Limited and its major stockholders Yahoo Inc. and Softbank Corporation were “engaged in and committed to productive negotiations to resolve the outstanding issues related to Alipay in a manner that serves the interests of all shareholders as soon as possible.” According to news reports, Alibaba Group Holdings Limited received only $46 million for Alipay’s assets, which securities analysts valued at $5 billion.

Shares of Yahoo! Inc. (Public, NASDAQ-YHOO) fell from $18.60 on May 10 to $15.73 on May 16 and closed recently at $15.20 per share.

Those who are current long term investors in shares of Yahoo! Inc.  and continue to hold those shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring service and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.