Alibaba Shares Tumble After Fraud Leads to CEO Departure
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Alibaba.com Ltd. fell the most in more than a year after the company said an internal probe found more than 2,300 vendors used its website to defraud global buyers, prompting the chief executive officer to quit.
Some Alibaba employees were responsible for letting sellers create bogus storefronts, China’s biggest electronic-commerce company said yesterday. CEO David Wei and Chief Operating Officer Elvis Lee, who weren’t accused of wrongdoing, resigned to take responsibility for the “systemic breakdown” of integrity, it said.