Former Alibaba Manager Accused Of Sexual Assault Avoids Prosecution, Released After 15-Day Detention

The sexual assault scandal that claimed the job of a former Alibaba Group Holding Limited BABA manager has ended without criminal prosecution. 

What Happened: Chinese prosecutors have decided against pressing charges against the ex-Alibaba employee who was accused of sexually assaulting a female colleague, Reuters reported.

Local police detained the former Alibaba manager in August on suspicion of sexually assaulting his colleague while they were on a business trip to the northern Chinese city of Jinan.

Prosecutors have now deemed that an arrest was unwarranted and instead decided to detain the accused for 15 days, the report said, citing a statement posted on Jinan police on its Weibo social media site.

In late August, the local police arrested a former employee of Jinan Hualian Supermarket with the surname of Zhang, who was also charged with the same offence as the ex-Alibaba staffer.

Related Link: 3 Alibaba Analysts Say Valuation Is Attractive Despite Q1 Disappointment

Why It's Important: Alibaba, while sacking the executive, had also asked two other senior executives to resign over the way the case was handled.

The decision by the prosecutors triggered mixed reaction, with some suggesting it underlines the lack of safeguards for women in sexual assault cases, while others said the detention in itself was a punishment.

Alibaba's CEO Daniel Zhang had earlier pledged to establish an "anti-sexual harassment policy" with zero tolerance for sexual misconduct.

"Alibaba Group has a zero-tolerance policy against sexual misconduct, and ensuring a safe workplace for all our employees is Alibaba's top priority, Alibaba reportedly said in a statement Tuesday.

BABA Price Action: At last check, Alibaba shares were 2.8% higher at $175.07. 

Related Link: Alibaba Analyst Says Regulatory Environment 'Challenging,' But Worst Is Over