Alibaba Group Holding Ltd. sued two vendors it said used the company’s Taobao website to sell counterfeit Swarovski watches, just weeks after the site was labeled a haven for knockoffs by U.S. regulators. The lawsuit is the first legal action taken by an e-commerce site in China against sellers of counterfeit goods and Alibaba seeks 1.4 million yuan in damages, the company said Wednesday in a statement.