August 10, 2012 - The court granted the defendants' motion to dismiss.

January 27, 2012 - A motion to dismiss the amended complaint was filed.

December 15, 2011 - An amended complaint was filed.

June 6, 2011 - An investor in shares of Yahoo! Inc (NASDAQ: YHOO) filed a lawsuit in the U. S. District Court for the Northern District of California against Yahoo! Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 19, 2011 and May 13, 2011. 

According to the complaint the plaintiff alleges on behalf of purchasers of Yahoo! Inc (NASDAQ: YHOO) common stock during the period between April 19, 2011 and May 13, 2011, that Yahoo! Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between April 19, 2011 and May 13, 2011 materially false and misleading statements regarding its business prospects. Yahoo! Inc’s 12 months Total Revenue fell from $6.969 billion in 2007, respectively $7.208 billion in 2008 to $6324 billion in 2010. On the other hand its Net Income rose over the same time frame from $639.15 million in 2007, respectively $418.92 million in 2008 to $1,231 million in 2010.

For the first quarter in 2011 Yahoo! Inc reported $1.214 billion in Total revenue for the first quarter compared to $1.596 billion for the first quarter in 2010. Its Net Income for the first quarter fell from $310.19 million in 2010 to $222.99 million for the first quarter in 2011. Specifically, the plaintiff alleges that the defendants failed to disclose that an important corporate asset in China had been transferred at much less than market value. Shares of Yahoo! Inc (NASDAQ: YHOO), which traded during 2008 as high as $29.66 and in 2007 as high as $33.63, increased from as low as $9.39 in November 2008 to as high as $18.65 on May 6, 2011.

On May 10, 2011, the complaint alleges, Yahoo! Inc shareholders learned for the first time that Yahoo! Inc’s $1 billion investment in a strategic partnership with Alibaba Group Holdings Limited , China’s largest e-commerce company, likely had been severely impaired by the misappropriation of Alibaba Group Holdings Limited’s most valuable asset, Alipay, an e-commerce payment system, from Alibaba Group Holdings Limited to another private company controlled by Alibaba Group Holdings Limited’s Chairman, Jack Ma.

Then on May 15, 2011, Yahoo! Inc issued a press release regarding Alipay, stating that Alibaba Group Holdings Limited and its major stockholders Yahoo! Inc and Softbank Corporation were “engaged in and committed to productive negotiations to resolve the outstanding issues related to Alipay in a manner that serves the interests of all shareholders as soon as possible.” According to news reports, Alibaba Group Holdings Limited received only $46 million for Alipay’s assets, which securities analysts valued at $5 billion.

Shares of Yahoo! Inc (NASDAQ: YHOO) fell from $18.60 on May 10, 2011 to $15.73 on May 16, 2011 and closed at $15.45 per share.