Alibaba Finally Settled a Lawsuit Over Ant Group Fallout— Here’s How to Get Your Payout

Court: S.D. New York

Case: 1:20-cv-09568

Last year, Alibaba BABA agreed to a $433.5M settlement to resolve a lawsuit from investors who say the company misled them about regulatory risks tied to its affiliate, Ant Group. The deal came years after Chinese regulators abruptly suspended Ant’s blockbuster IPO and launched investigations that triggered one of the sharpest drops in Alibaba’s stock history.

The Ant Group Meltdown That Shook Markets

In 2020, Ant Group was gearing up for a record-breaking $30 billion IPO in Hong Kong and Shanghai. As Alibaba’s fintech affiliate, Ant was positioned to transform consumer lending in China—and investors were all in. But just days before the IPO, Chinese regulators summoned Ant executives to discuss serious compliance concerns tied to new lending regulations. By November, regulators suspended the IPO entirely.

After that news came out, BABA dropped over 8%, with another 13% plunge following news of a separate antitrust probe.

Shareholders Push Back on Alibaba’s Silence

By April 2022, shareholders filed a lawsuit claiming Alibaba downplayed the mounting regulatory pressure facing Ant Group and failed to disclose how it could hit the IPO and impact Alibaba’s own business. They argued that Jack Ma’s public criticism of Chinese financial regulators and Alibaba’s reassurances to investors painted a misleading picture of the risks ahead.

A $433.5M Settlement Offers Relief —What Investors Should Know Now

The $433.5 million settlement provides a path to recovery for investors who suffered losses from the Ant Group fallout. While the official deadline to file has passed, investors who were financially impacted may still be eligible to submit a claim. You can check your eligibility and file a claim here.