REID COLLINS OBTAINS $300 MILLION SETTLEMENT – ONE OF LARGEST DERIVATIVE CASE RECOVERIES IN HISTORY – IN RENREN LITIGATION
On October 8, 2021, Reid Collins & Tsai LLP announced resolution of the In re Renren, Inc. Derivative Litigation through a direct pay cash settlement of at least $300 million, one of the largest cash settlements of a derivative action in history. Pending in New York state court, the action alleges a complex scheme by Renren insiders to take the company’s billion-dollar investment portfolio for themselves. In both trial court and on appeal, Reid Collins defeated attempts by the Defendants to dismiss the case and evade accountability, with the courts accepting Reid Collins’ arguments addressing novel issues on personal jurisdiction and standing.
The precedent-setting case will have long term impacts for protecting investors from cross-border fraud and financial misconduct. The Reid Collins team faced significant legal challenges to acquire U.S. jurisdiction over multiple foreign defendants and establish derivative standing under Cayman law. These wins have created new precedent to combat a growing problem in the financial sector – the difficulty in addressing fraud and wrongdoing by foreign companies (and related individual actors) publicly traded in the U.S.
The case and settlement have received significant media coverage including the following (paywalls):
— The New York Times – “Renren, SoFi and a $300 million settlement” (scroll down)
— Financial Times – “US-listed Chinese group Renren settles investor complaint for $300m”
— Reuters – “‘Facebook of China’ shareholders score $300 million in cross-border derivative deal”
— Bloomberg – “Renren Insiders Settle SoFi Stake Suit in $300 Million Deal”
— Law360 – “Renren Investors To Settle Derivative Claims With $300M Deal
— AmLaw Litigation Daily – “Litigators of the Week”
Prior results do not guarantee a similar outcome.