Alibaba (BABA) Said to Face U.S. Accounting Inquiry

(Updated - May 25, 2016 7:44 AM EDT)

Alibaba (NYSE: BABA) said to face U.S. accounting inquiry.

UPDATE - News comes from an annual filing made by Alibaba on Tuesday night. The e-commerce giant said it provided the U.S. SEC with "requested documents and information. The SEC advised us that the initiation of a request for information should not be construed as an indication by the SEC or its staff that any violation of the federal securities laws has occurred. This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded."

With the SEC filing, Alibaba cautioned: The existence of litigation, claims, investigations and proceedings may harm our reputation and adversely affect the trading price of our ADSs. The outcome of any claims, investigations and proceedings is inherently uncertain, and in any event defending against these claims could be both costly and time-consuming, and could significantly divert the efforts and resources of our management and other personnel. An adverse determination in any litigation, investigation or proceeding could cause us to pay damages as well as legal and other costs, limit our ability to conduct business or require us to change the manner in which we operate.

Shares of Alibaba are indicated lower Wednesday morning.

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