Jack Ma Embraces Lawsuits

Whether or not Jack Ma is a successful man in retail is a matter for debate. Whether or not Jack Ma is the most endlessly quotable man in retail is becoming an increasingly settled issue — at least until Dov Charney can get the second coming of American Apparel (Schmatta LA) off the ground anyway.

Adding to the ever-lengthening list of Jack Ma quotes worthy of your next dinner party this week were the founder and chairman of Alibaba‘s thoughts on a coming SEC inquiry into how Alibaba reports sales data on Singles’ Day. Ma noted that, while most businesses shy away from court cases and investigations as necessarily bad news, he believes that such closer looks into its accounting are good for the firm in the long run.

“If you want to sue us, sue us,” Ma told Reuters in response to a U.S. Securities and Exchange Commission investigation launched earlier this year. “It’s an opportunity for us to let them understand what we’re doing.”

Apart from Singles’ Day sales reporting, the SEC is also interested in Alibaba’s relationship with logistics affiliate Cainiao Smart Logistics Network.

Alibaba currently owns a 47 percent stake in the firm.

Ma also confirmed that Alibaba had provided the SEC with all requested materials and that he had no insight as to when a finding would be announced, or even if a finding would be announced.

According to reports, the SEC is not the only entity interested in how Alibaba’s accounting works internally, with many questioning if the firm is reporting investments as expenses and thus inflating its profits.

“We just don’t see how profitable or unprofitable that business is,” noted Jim Chanos, founder of Kynikos Associates. In May, Chanos went on record as saying he’s doubtful about Alibaba’s cash flow and questions the company’s own metrics.

Ma’s comments are also being reported as more disturbing than helpful in this instance. Reports indicate that Jack Ma, while speaking publicly at a philanthropic event, even noted that perhaps his public profile is a bit too high. He actually mentioned that his father had suggested he get out of the limelight some.

But when it comes to a closer look at the fundamentals of the business he runs, Ma seems to be interested in getting just a bit more up close and personal.