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BABA.US
id: 1376

Alibaba (BABA) $433M Investor Settlement

Eligible claimants can submit their claims for compensation.
S.D. New York
Court
1:20-cv-09568
Case number
11/13/2019
Class period Start
12/23/2020
Class period End
03/26/2025
Claim deadline
Alibaba (BABA) agreed to a $433.5 million settlement with investors over claims it misled them about Ant Group's regulatory issues that affected its IPO and lending activities.

Outline

A few years back, Alibaba faced major regulatory hurdles as its affiliate, Ant Group, was set to go public with a highly anticipated IPO. Right before the launch, Chinese regulators raised concerns about Ant's compliance with new lending and credit rules, forcing delays and a restructuring. Following this news, $BABA fell significantly, and Alibaba faced a lawsuit from shareholders.

Timeline
  • November 5, 2019: Chinese regulators, including SAMR, warned Alibaba and other tech firms about complying with antitrust and financial laws.
  • November 2, 2020: Ant Group executives were summoned by China’s central bank and other regulators over compliance with new rules.
  • November 3, 2020: Regulators announced the suspension of Ant’s IPO.
  • In response, $BABA dropped by 8% from the prior day.
  • December 23, 2020: Chinese authorities revealed a new antitrust investigation into Alibaba.
  • December 24, 2020: $BABA saw one of its largest one-day drops in history, falling 13%.
  • April 22, 2022: Alibaba faced a lawsuit from investors.
Background

In July 2020, Ant Group announced a record $30 billion IPO in Hong Kong and Shanghai, generating investor excitement and positioning the Alibaba affiliate as a key player in transforming China's financial services.

However, Jack Ma, Alibaba’s founder, publicly criticized China's outdated financial regulations, leading to increased scrutiny of Ant's high-risk consumer lending practices.

On November 2, 2020, Chinese regulators summoned Ant Group executives, including Ma, to discuss compliance with new financial regulations on consumer lending.

On November 3, 2020, regulators announced the suspension of Ant’s IPO.

In response, $BABA dropped by 8.1% from the prior day.

Subsequently, the State Administration for Market Regulation (SAMR) launched an antitrust investigation into Alibaba for alleged monopolistic practices.

Following this news, $BABA saw one of its largest one-day drops in history, falling 13%.

What can investors expect now?

Alibaba agreed to a $433.5 million settlement with $BABA investors over claims it misled them about Ant Group's regulatory issues that affected its IPO and lending activities.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement.
Case Status
Accepting Claims
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Government Authority
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.63
Filing date
11/13/2020
Plaintiffs
Laura Ciccarello; Salem Gharsalli; Dineshchandra Makadia; Yan Tongbiao
Attorneys
Beijing Hao Junbo Law Firm (Beijing, ), Bronstein, Gewirtz & Grossman, LLC (New York, NY), Glancy Prongay & Murray LLP (Los Angeles, CA), Pomerantz LLP (New York, NY), The Law Offices of Frank R. Cruz (Los Angeles, CA)
Defendants
Daniel Zhang; Maggie Wu
Judge
George B. Daniels
Administrator
A.B. Data Ltd
Settlement agreement date
2024-10-25
Court hearing date
03/27/2025
Exclusion deadline
03/06/2025
Objection deadline
03/06/2025
Attorney fee
$131,549,999
Class wide damages
$2,174,200,000
Trades matching type
FIFO
+$433,500,000
Cash Settlement Amount

Alibaba Group Holdings Ltd ADR

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users...

    Ticker
    BABA.US
    ISIN
    US01609W1027
    CIK
    1577552
    Sector
    Consumer Cyclical
    Industry
    Internet Retail
    Country
    USA
    Address
    969 West Wen Yi Road, Hangzhou, China, 311121