REID COLLINS WINS APPEAL IN $500 MILLION RENREN DERIVATIVE LITIGATION INVOLVING BILLION DOLLAR SHAM “SPINOFF”
In May 2020, Reid Collins defeated all five motions to dismiss filed by the defendants in the In re Renren, Inc. Derivative Litigation, a lawsuit alleging a complex scheme by Renren insiders to squeeze out minority shareholders and take the company’s billion-dollar investment portfolio for themselves.
On March 18, 2021, the Appellate Division, First Judicial Department of New York State Court affirmed the trial court’s denial of all the motions to dismiss and rejected defendants’ arguments that plaintiffs lack standing to bring this derivative action under Cayman Islands law. The decision found that Plaintiffs sufficiently pleaded that the director defendants, with the assistance of numerous co-defendants, committed fraud, obtaining personal benefits at the corporation’s expense.
The action arises from complex financial transactions surrounding a billion-dollar sham “spin-off” of Renren and seeks more than $500 million in damages.
Read the decision and order here.
Prior results do not guarantee a similar outcome.