Alibaba has agreed to pay $433.5 million to settle a shareholder lawsuit that accused the e-commerce giant of engaging in monopolistic practices.
On Friday, China's e-commerce giant will pay a large amount to resolve a US class-action lawsuit brought by investors, who claimed Alibaba's involvement in monopolistic practices.
However, Alibaba refuted all the allegations, stating that it signed the deal to avoid the expense and inconvenience of more litigation.
In Manhattan’s federal court, the proposed settlement was filed with the requirement and the approval of US District Judge George Daniels.
As per the 2020 case, Alibaba argued that, despite forcing merchants to select just one distribution network, it did not break anti-monopoly or unfair competition rules.
Notably, this settlement applies to all the investors who held Alibaba's American depositary shares (ADS) during the period from November 13, 2019, to December 23, 2020.
However, these investors claimed that they faced huge losses during the time of these allegations.
In the court filings, the complainant's attorneys alluded to the proposed transaction as "an exceptional result," claiming that it beat the recovery in securities class actions when the investor losses above $10 billion.
The attorneys stated that the Alibaba investors might faced more damages of $11.63 billion if they had carried on their litigation.
