JD.com buys back shares following CEO controversy

JD.com will buy back 1 billion dollars worth of its shares. While
the Chinese e-commerce giant’s plans are partly due to concerns of
China’s economy, this comes just after charges against the company’s
CEO have been dropped.

CEO Richard Liu will not be charged with sexual assault, following
an investigation in Minneapolis. Liu had been arrested in August, and
accused of raping a 21-year-old student. During this time, the
billionaire CEO had been involved in an executive program within the
University of Minnesota.

“As we reviewed surveillance video, text messages, police body
camera video and witness statements, it became clear that we could not
meet our burden of proof and, therefore, we could not bring charges,”
Hennepin County Attorney Mike Freeman explained the county’s reasons
against charging Liu in a statement. “Because we do not want to
re-victimize the young woman, we will not be going into detail.”

JD.com’s share buyback program is intended to lift stock prices
that have been weighed down by Liu’s recent controversy. The company’s
shares dropped by more than 60 percent this year, mostly due to poor
publicity related to Liu. Shares of JD.com had traded at almost 51
dollars per share at the start of this year, falling to under 20
dollars recently.

The 1 billion dollars of its shares will be bought back during the
course of the next 12 months, funded by JD.com’s existing cash
balance.