Alibaba (BABA) Stock Declines Today on Counterfeit Goods Lawsuit

NEW YORK (TheStreet) -- Alibaba (BABA) shares are down 1.45% to $87.18 in early market trading on Monday after the Chinese online retailer was sued by Kering SA  (PPRUY), the parent company of luxury brands Gucci and Yves Saint Laurent among others, for allegedly failing to stop products that it knows to be counterfeits from being bought and sold on its website.

Kering SA said that the company "provide(s) the marketplace advertising and other essential services necessary for counterfeiters to sell their counterfeit products to customers in the United States."

Alibaba has already released a statement defending itself saying in part through a company spokesperson that, "We continue to work in partnership with numerous brands to help them protect their intellectual property, and we have a strong track record of doing so. Unfortunately, Kering Group has chosen the path of wasteful litigation instead of the path of constructive cooperation. We believe this complaint has no basis and we will fight it vigorously."

Alibaba has been criticized for years by various companies for not doing enough to stop the sale of fraudulent material on the site. The South Morning China Post, which first broke the story, reported that the lawsuit seeks undisclosed damages and an injunction.

BABA Chart BABA data by YCharts

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