REID COLLINS SECURES SIGNIFICANT SANCTIONS RULING IN FANG HOLDINGS SHAREHOLDER DERIVATIVE ACTION
New York, NY – September 8, 2025 – Reid Collins & Tsai LLP obtained an important victory in the shareholder derivative action brought by Oasis Investments II Master Fund Ltd. on behalf of Fang Holdings Limited against certain former and current directors and officers.
On September 5, 2025, Justice Andrew Borrok of the New York Supreme Court, Commercial Division, granted Oasis’s motions for sanctions, striking the defendants’ answers in their entirety—an extraordinary remedy that New York courts rarely impose.
Over two years into the action, Justice Borrok found that Oasis had established that the defendants engaged in “intentional and willful destruction of documents,” “flagrant and blatant disregard of numerous court orders,” and “deliberate attempts to frustrate the plaintiff’s right to seek relevant discovery.” Justice Borrok’s Order can be found here.
Bill Reid, founding partner of Reid Collins, stated that this was “the most egregious litigation misconduct he had witnessed in his career.”
By striking the defendants’ pleadings, the Court imposed one of the strongest available sanctions for discovery abuse, underscoring the seriousness of the defendants’ conduct.
“This is a significant and well-deserved ruling for Fang Holdings and its minority shareholders that ensures accountability for Defendants’ misconduct and allows the case to move forward toward meaningful relief,” said Aaron Brown, the Reid Collins attorney leading the case.
Prior results do not guarantee a similar outcome.