Alibaba to pay $433.5 million to settle shareholder lawsuit over monopoly claims

Share This Post


China’s Alibaba agreed to pay $433.5 million to settle a U.S. class-action lawsuit.
| Photo Credit: Reuters

China’s Alibaba said on Friday it had agreed to pay $433.5 million to settle a U.S. class-action lawsuit filed by investors alleging monopolistic practices by the e-commerce giant.

Alibaba denied wrongdoing, saying it entered the settlement to avoid the cost and disruption of further litigation.

The proposed settlement was filed in federal court in Manhattan and requires the approval of U.S. District Judge George Daniels.

The lawsuit, filed in 2020, alleged that Alibaba claimed it did not violate anti-monopoly or unfair competition laws, despite requiring merchants to choose only one distribution platform.

The settlement covers investors in Alibaba’s American depositary shares from Nov. 13, 2019, to Dec. 23, 2020, and resolves claims they suffered losses when the market recognized Alibaba’s misleading statements and the stock price fell.

Lawyers for the plaintiffs in court papers called the proposed deal “an exceptional result,” saying it vastly exceeded the median recovery in securities class actions where the investor losses exceeded $10 billion.

The maximum damages award the Alibaba investors could have potentially sought had they continued litigating was $11.63 billion, the lawyers wrote.

The case is in re Alibaba Group Holding Ltd Securities Litigation, U.S. District Court, Southern District of New York, No. 20-09568.



Source link

spot_img

Related Posts

I saw Lego’s new F1 range – check out these iconic sets

When Lego announced it was teaming up with...

Salesforce launches Agentforce Testing Center to put agents through paces

Join our daily and weekly newsletters for the...

Maxar prepares for final WorldView Legion launch to complete advanced imaging constellation

WASHINGTON — Maxar Intelligence is targeting early 2025...

Is social media doing more harm than good to democracy?

In the U.K., The Guardian newspaper announced earlier...

CMA Readies Cloud Sector “Behavioural” Remedies

Targetting AWS, Microsoft? British competition regulator soon to...

Website in a weekend – it’s that easy!

With a modern platform like Squarespace, there’s no...
spot_img