Alibaba Group to Pay USD 433.5 Mln to Settle Shareholder Class Action Lawsuit
Alibaba Group, 10/27/24
Chinese e-commerce giant Alibaba Group (NYSE: BABA; 9988.HK) announced today in a filing with the Hong Kong Stock Exchange that it had agreed to pay USD 433.5 mln to settle a U.S. class-action lawsuit filed by investors alleging monopolistic practices.
Editor's Note: According to Reuters, 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 November 13, 2019, to December 23, 2020, and resolves claims they suffered losses when the market recognized Alibaba's misleading statements and the stock price fell.
Keywords: e-commerce Internet Alibaba Group BABA 9988.HK litigation law
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