San Diego, Oct. 03, 2011 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Youku.com Inc (ADR) (NYSE:YOKU) over possible Violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Youku.com Inc (ADR) (YOKU) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements regarding Youku.com Inc business, its prospects and its operations were potentially materially false and misleading at the time they were made.

The investigation follows media reports that said the U.S. Department of Justice (DOJ) is assisting a U.S. Securities and Exchange Commission (SEC) probe of possible accounting irregularities among unnamed U.S.-listed Chinese firms. The investigation by a law firm for investors focuses several Chinese internet companies, including but not limited to Youku.com Inc.

Despite that Youku.com Inc reported an enormous increase in its annual Revenue its Net Loss also rose substantially. Youku.com Inc (ADR) reported an increase in its 12months Total Revenue from $1.78million in 07 to $387.10million in 2010, while its Net Loss increased from $89.68million in 2007 to $204.68million in 2010. In addition, despite an increase in its second quarter Revenue from $71.20million last year to $197.85million this year, Youku.com Inc (ADR) could not report a Net Income for the second quarter in 2011, but had to report a Net Loss of $28.10million for the second quarter in 2011, compared to a second quarter Net Loss of $62.64million last year.

Shares of Youku.com Inc (ADR) (Public, NYSE:YOKU) rose since its IPO in early December 2010 from $33.34 per share to over $67 per share in April 2011. However since its peak in April 2011 NYSE: YOKU stocks fell to as low as $15.88 per share on Oct. 3, 2011.