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JD.com accuses Noah Holdings of malicious lawsuits amid trial

EditorHari Govind
Published 07/12/2023, 01:28 pm
© Reuters.
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BEIJING - JD (NASDAQ:JD).com, the Beijing-based e-commerce behemoth, has openly accused Noah Holdings (NYSE:NOAH) and its subsidiary Gopher Asset Management of engaging in "malicious lawsuits." The accusation comes as JD Century Trade Holdings, a subsidiary of JD.com, is embroiled in a legal battle overseen by the Shanghai Financial Court. The dispute centers around allegations tied to a supply chain financing scam by Camsing International, which falsely implicated JD in transactions worth 3.4 billion yuan.

JD.com took to its Weibo (NASDAQ:WB) account to denounce the actions of Noah Holdings and Gopher Asset Management, asserting that their prolonged legal battles have caused both reputational damage and financial harm to JD. Furthermore, the company accused them of misleading investors through repeated involvement in fraud cases. Highlighting the gravity of the situation, JD.com pointed to the life sentence handed down to Camsing’s founder, using it as evidence of their non-involvement in the fraudulent activities.

In response to these public comments, Gopher Asset Management has labeled JD’s statements as premature and has vowed to take legal steps to safeguard its interests.

This legal confrontation has had noticeable effects on the stock market. Following the exchanges between the involved parties, Noah’s stock experienced a 4% increase during New York trading sessions on Monday, with shares climbing to $13.14. On the other hand, shares of JD saw a decline of 2.1%, closing at $26.59.

The ongoing trial at the Shanghai Financial Court and the public spat between the companies have drawn significant attention from investors and market observers alike, as they await further developments in this high-stakes contractual dispute.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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