In a high-stakes settlement, Alibaba, China’s e-commerce titan, has agreed to pay $433.5 million to end a U.S. class-action lawsuit accusing it of monopolistic practices. Although denying any liability, Alibaba chose to settle to sidestep the drawn-out costs and potential impact of ongoing litigation.
The case, filed in 2020, centers on claims that Alibaba pressured merchants to limit their business to a single platform, an approach critics say violated competition laws. Investors argued they suffered losses as Alibaba’s alleged practices and statements came under scrutiny, eventually impacting the company’s stock.
This settlement, pending approval in Manhattan federal court, offers significant restitution for shareholders holding American depositary shares between November 2019 and December 2020. Attorneys representing the investors hailed the outcome as an “exceptional result,” noting it surpasses average recoveries in similar high-value securities cases.
Though the investors initially sought up to $11.63 billion in damages, this payout brings a notable resolution to Alibaba’s legal entanglement.
