The court approved Alibaba’s $250 million “investor class action settlement plan”

0
235

[Abstract] the settlement agreement also resolved the charges against Alibaba executives, including Ma Yun, billionaire founder and then executive chairman of the company.
Tencent technology news according to foreign media reports, recently, a federal judge in Manhattan, New York, the United States, finally approved Alibaba Group’s $250 million settlement agreement related to the 2015 investor lawsuit. In the lawsuit, the plaintiff argued that Alibaba artificially inflated the value of its shares
According to foreign media reports, the judge ruled that the settlement plan was “fair, reasonable and sufficient”
In April, Alibaba Group announced it would pay $250 million to settle a class action lawsuit in the United States that accused the Chinese e-commerce company of concealing a regulatory warning about counterfeit goods before it went public in 2014.
The lawsuit accused Alibaba of securities fraud because it failed to disclose its meeting with the original state administration for Industry and Commerce on July 16, 2014, two months before the company’s initial public offering, which raised $25 billion.
From January 28 to 29, 2015, Alibaba’s American Depository Receipts (equivalent to shares) fell by 12.8%, after the industrial and commercial administration released a white paper according to the results of the talks with Alibaba, saying that many products sold on Alibaba’s website were counterfeit or infringing the business target.
The white paper also said that the administration of industry and Commerce delayed the release of its findings to avoid the impact of Alibaba’s IPO.
According to foreign media reports, Alibaba’s proposed class action solution covers investors in Alibaba’s American Depository Receipts and options products, covering four and a half months before the launch of the white paper. The white paper was later withdrawn.
The settlement also settled charges against Alibaba executives, including Ma Yun, billionaire founder and then executive chairman of the company.
Alibaba denies wrongdoing. The settlement ended all pending securities litigation against the company, its officers and directors, the company said.
In court documents, the plaintiff’s lawyers called the agreement “fair, reasonable and sufficient in nature.”
According to the settlement documents, lawyers may seek up to 25% of the legal fees settlement fund.
The Chinese company has long faced accusations that its online platform is a paradise for counterfeit goods, and some luxury brands such as Gucci have filed lawsuits about counterfeit goods.
Alibaba, Amazon, eBay and other similar companies have policies that prohibit counterfeiting, and they all emphasize that they have invested resources to crack down on counterfeit goods. (reviewed by Tencent technology / Chengxi)