China’s Alibaba Group (9988.HK) has agreed to pay $433.5 million to settle a U.S. class-action lawsuit, which accused the e-commerce giant of monopolistic practices. The lawsuit, filed in 2020, alleged that Alibaba violated anti-monopoly and unfair competition laws by requiring merchants to choose a single distribution platform, effectively limiting competition.

While denying any wrongdoing, Alibaba stated it chose to settle to avoid the high costs and potential disruption of prolonged litigation. The settlement, filed in a Manhattan federal court, awaits approval from U.S. District Judge George Daniels.

The settlement covers investors in Alibaba’s American depositary shares between November 13, 2019, and December 23, 2020. Lawyers for the plaintiffs praised the deal, calling it an “exceptional result” that significantly exceeds the typical recovery for securities class actions of this scale. The maximum damages that could have been pursued in court were estimated at $11.63 billion.

The case, listed as In re Alibaba Group Holding Ltd Securities Litigation, underscores ongoing global scrutiny of major tech firms’ business practices and their impact on market competition.

Related Readings:

business ecosystems 

Cars Parked In Front Of Company Building

Digital analytics data visualization, financial schedule, monitor screen in perspective

LEAVE A REPLY

Please enter your comment!
Please enter your name here