Alibaba to pay US$433m settlement

Alibaba (9988) has agreed to pay US$433.5 million (HK$3.37 billion) to settle a US class-action lawsuit filed by investors alleging monopolistic practices by the Chinese e-commerce giant.

Alibaba denied wrongdoing, saying it entered the settlement to avoid the cost and disruption of further litigation. The proposed settlement was filed in federal court in Manhattan and requires the approval of US District Judge George Daniels.

The lawsuit 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.

Reuters