JD.com CEO Richard Liu willing to cooperate further with US authorities if needed after rape allegation arrest

Reading Time:2 minutes

JD chief executive Richard Liu Qiangdong (fifth from the right) with Ruyi Group chairman Qiu Yafu to his right, and flanked by executives from both companies at the signing of a strategic partnership at JD's Beijing headquarters on Tuesday. Photo: Handout

Published: 3:00pm, 7 Sep 2018Updated: 3:43pm, 20 Oct 2020

JD.com founder Richard Liu Qiangdong, who was arrested and then released in the US last week after being accused of rape, “is willing to cooperate further if requested”, the company said on its website.

“Mr. Liu has cooperated with Minneapolis law enforcement and is willing to cooperate further if requested,” according to an update posted on JD.com’s corporate blog, dated September 6.

JD.com also said that there has been no interruption of the company's day-to-day business operations and that Liu has resumed work. “The situation in Minnesota did not have, and is not expected to have, any impact on JD.com’s day-to-day operations,” said the company in the blog update.

Liu, the 45-year-old billionaire and cjief executive of China’s second largest e-commerce player, returned to the country on Monday and turned up for work at JD.com’s Beijing headquarters the following day for the signing of a strategic partnership with Chinese textile manufacturer Ruyi Group. Liu was arrested on August 31 by Minneapolis police on a rape accusation, a first-degree felony if the founder of JD.com is charged with the crime, according to police records. No charge has been filed against Liu as the matter is still under investigation by the sex crimes division of the Minneapolis Police Department.

Liu’s return to China and resumption of his duties has failed to reassure some investors – with its ADRs tumbling 10.6 per cent in Nasdaq trading to US$26.30 on Wednesday before a slight rebound of 3.6 per cent on Thursday.

JD.com may also face class action lawsuits, with several US law firms alleging that the company may have failed to disclose information pertinent to the arrest of its chief executive. The Schall Law Firm, Pomerantz LLP and Rosen Law Firm all said separately on Tuesday they are investigating potential securities claims on behalf of shareholders of JD.com.