RCT FILES $300 MILLION SHAREHOLDER DERIVATIVE ACTION IN NEW YORK STATE COURT
On July 19, 2018, RCT filed a shareholder derivative action in New York state court on behalf of Renren, Inc., against Joseph Chen, its CEO, Chairman, and largest shareholder, and David Chao, one of its directors. The complaint asserts claims for, among other things, breach of fiduciary duty in connection with Renren’s spin-off of its most valuable assets to a private company owned and controlled by Chen, Chao, and other insiders for far less than fair market value. The complaint seeks to recover more than $300 million in damages.
Prior results do not guarantee a similar outcome.