Alibaba, the Chinese e-commerce giant, has agreed to pay $433.5 million to settle a US class-action lawsuit, according to reports.
The lawsuit was filed in 2020 alleging the company of engaging in monopolistic practices. It was alleged that Alibaba had breached anti-monopoly and unfair competition laws by restricting merchants to a single distribution platform.
The e-commerce giant, however, denied the wrongdoing, saying it reached the settlement to avoid the expense and disruption of further litigation.
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According to Alibaba, the proposed settlement has been submitted to the Manhattan federal court and requires the approval of US District Judge George Daniels.
The reports suggested that the settlement covers investors in Alibaba's American depositary shares from November 13, 2019, to December 23, 2020.
The settlement also addresses claims that investors suffered losses when the market recognised Alibaba's misleading statements, leading to a decline in its stock price.
However, in court filings, lawyers termed the proposed settlement "an exceptional result," noting that it far surpasses the typical recovery in securities class actions involving over $10 billion in investor losses.
The maximum potential damages Alibaba investors could have sought if they had continued litigation was approximately $11.63 billion, the lawyers added.