Alibaba, AUS Merchant Services to Pay $600 Million to Resolve US Allegations Over Illegal Product Sales

MT Newswires Live03:22

Alibaba Group Holding (BABA) and its US-based payment processor, AUS Merchant Services, agreed to pay a combined $600 million to resolve US allegations over illegal product sales on the company's e-commerce platforms, the US Department of Justice said Wednesday.

The department alleged Alibaba failed to prevent about 80,000 transactions involving illegal pharmaceuticals, controlled substances, listed chemicals and pharmaceutical equipment imported into the country through Alibaba.com and AliExpress between 2016 and 2024.

AUS also admitted shortcomings in its anti-money laundering controls that failed to prevent payments tied to some prohibited sales, the report said.

Alibaba will pay a $125 million criminal penalty and forfeit $200 million, while AUS will pay an $85 million penalty and forfeit $190 million. Both companies also agreed to strengthen compliance programs and continue cooperating with US authorities.

Price: 98.34, Change: +2.35, Percent Change: +2.45

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment