Alibaba Investor Claims Advance Over China Antitrust Penalty

E-commerce giant Alibaba Group Holding Ltd. failed Wednesday to dislodge investors’ allegations that it violated securities laws on its way toward incurring a $2.8 billion anti-monopoly penalty in China.

The US investors adequately pleaded that Alibaba made misleading statements when it pledged that it wouldn’t force merchants to exclusively use its own platform, Judge George B. Daniels said for the US District Court for the Southern District of New York.

But the investors can’t proceed with claims over the collapse of a proposed initial public offering by financial technology company Ant Group Co., in which Alibaba owned a 33% stake, ...