Alibaba Settlement $11.63B Investor Claims
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.
Mutib Khalid is a skilled content writer and digital marketer with a knack for crafting compelling narratives and optimizing digital strategies. Excel in creating engaging content that drives results and enhances online presence. Passionate about blending creativity with data-driven approaches, Mutib Khalid helps brands connect with their audience and achieve their goals.
