Alibaba Settles $433.5M Class Action Lawsuit

Alibaba Group has agreed to pay $433.5 million to settle a class-action lawsuit filed by investors who accused the company of misleading statements regarding its exclusivity practices and antitrust violations. The lawsuit, initiated in March 2023, claimed that these misleading statements inflated Alibaba's stock price, leading to significant investor losses when the truth emerged. While the company denies any wrongdoing or liability, it opted for the settlement to avoid further litigation costs and disruptions. The proposed settlement is pending approval from U.S. District Judge George Daniels and is notable as one of the largest in U.S. securities class action history. It covers investors who purchased Alibaba's American depositary shares between November 2019 and December 2020, and addresses claims related to monopolistic practices and the halted IPO of Ant Group, in which Alibaba holds a substantial stake.