Alibaba's Jack Ma Says 'No Chance' Of Settlement With Kering
- Shares of Alibaba Group Holding Ltd (NYSE: BABA) have lost 27 percent over the past 52 weeks.
- An ongoing concern among investors is Alibaba's initiatives (or lack thereof) of cracking down on counterfeit goods sold on its platform.
- Alibaba's founder and chairman, Jack Ma, said there is "no chance" the company will settle a lawsuit brought upon from French luxury conglomerate Kering.
Shares of Alibaba have lost around 27 percent from a year ago as investors have shown concerns over China's macroeconomic growth outlook, the company's own growth profile, and many other factors.
Investors have also shown concerns, perhaps to a lesser degree, that Alibaba isn't doing enough to limit the amount of counterfeit goods sold on its e-commerce platform. This could cause friction among Alibaba and large global conglomerates looking to tap the lucrative Chinese market.
Alibaba announced earlier in the summer several new initiatives to tackle the issue, including offering a dedicated representative to deal with complaints from companies. The Wall Street Journal noted that Alibaba is "constantly enhancing and refining" its "anticounterfeiting operations."
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Despite Alibaba's efforts, Kering SA, the France-based owner of global luxury brands including Gucci, Balenciaga and Yves Saint Laurent sued the company. The case remains ongoing and Alibaba initially said that the suit has no basis.
"I would [rather] lose the case, lose the money," Alibaba's founder and chairman Jack Ma was quoted as saying on Monday by China Daily USA. He added that by not settling, "we would gain our dignity and respect."
Ma was also quoted as saying there is "no chance" of a settlement. The Chinese-based publication also referenced a statement from Alibaba that Kering "has chosen the path of wasteful litigation instead of the path of constructive cooperation."
Alibaba believes that it needs to work collaboratively with brands to fight against counterfeit sales.
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