E-commerce giant Alibaba Group Holding Ltd on Monday said the allegations made by leading global luxury retailers that it had turned a blind eye to counterfeiters has "absolutely no basis" and that it would fight the lawsuit filed against it in a New York court.

Industry sources said taking on counterfeits will be a tough and long-term effort for Alibaba as the Hangzhou-based company looks for growth in overseas markets.

The lawsuit was filed in a federal court in New York by Kering SA, the owner of luxury brands like Gucci and Yves Saint Laurent, on Friday. It alleged that Alibaba had conspired to manufacture, offer for sale and traffic in counterfeit products bearing their trademarks without permission, said a Reuters report.