Chinese e-commerce giant Alibaba has agreed to pay over $400 million to settle a U.S. shareholder class-action lawsuit. Investors accused the company of monopolistic practices, alleging that Alibaba forced sellers to operate exclusively on its platform.
Although Alibaba denies all allegations, it opted for a settlement to avoid prolonged and costly litigation.
The essence of the lawsuit lies in investors claiming substantial financial losses due to Alibaba’s stock price drop, which they attribute to disclosures about the company’s monopolistic practices.
The proposed compensation amount is one of the largest in the history of such legal cases. Attorneys representing the investors consider this a major victory.
