Police In Minneapolis Say Chinese Billionaire's Arrest Was For Alleged Rape

Police In Minneapolis Say Chinese Billionaire's Arrest Was For Alleged Rape

However, police spokesman Elder said, "We released him with the understanding that we were very confident we'd be able to reconnect with him as necessary in the investigation".

The Minneapolis police department declined to give further details of the case and circumstances of the arrest "because this is an active criminal investigation". He has since returned to China without being charged. Elder said the alleged attack reportedly occurred at 1am local time on Friday, and that Liu was taken into custody later that evening.

Three American law firms, Rosen, Schall and Pomerantz, said late Tuesday that they would investigate on behalf of shareholders whether JD.com issued misleading statements or failed to disclose information related to Liu's arrest.

The billionaire's lawyers deny any wrongdoing and have told the press that they are confident their client will not face charges, pointing out that police did not seize his passport.

Liu, CEO of the second-largest Chinese e-commerce company after Alibaba, was detained in Minneapolis, Minnesota, where he spent last week as a Ph.D. student in a business administration program at the University of Minnesota's Carlson School of Management. JD has not commented on the ongoing investigation but said in previous statements that the police had not found any misconduct in their probe into Liu.

No charges have been filed against Liu, but if charged and convicted, he could face up to 30 years in prison.

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Liu, who was identified by police by his Chinese name Liu Qiangdong, was arrested Friday night and released on Saturday. China does not have an extradition treaty with the United States.

The company faces increased competition not just from established rivals like market leader Alibaba, which owns the South China Morning Post, but also from relative newcomers like Pinduoduo, which has gained market share by selling low-cost items through a combination of group buying and social media.

If the USA police accuse Liu, the company's share price would continue to fall, but it was predicted that there would not be a sharp crash due to an already sharp decline this year, Reuters quoted Danny Law, an analyst at brokerage Guotai Junan as saying.

JD.com is 10 percent owned by Walmart, while Chinese internet firm Tencent owns 18 percent.

Liu lost a court battle in Australia in July to keep his name out of a sexual assault trial. The case involved a guest at a party Liu hosted at his home in Sydney who accused another guest of sexually assault.

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