Sadis & Goldberg Wins Preliminary Approval of $21 Million Settlement of Action Challenging Fairness of E-Commerce China Dangdang Going-Private Merger

Sadis & Goldberg LLP (“Sadis”) as counsel for lead plaintiffs, achieved preliminary approval of a $21 million settlement for investors in E-Commerce China Dangdang Inc. (“Dangdang”).   The settlement, subject to final approval, resolves arbitration and litigation challenging the fairness of a going-private merger in which Dangdang’s controlling stockholders and insiders took the Company private at an allegedly unfair price.  The settlement provides a large recovery to Dangdang’s minority stockholders, who were forcibly cashed out in the Merger. 

Dangdang, a leading Chinese E-Commerce company, allegedly forcibly cashed out its minority stockholders in the going-private merger, at a deal price that was lower than an offer from the third-party bidder.   Sadis brought suit on behalf of the lead plaintiffs, seeking damages for the allegedly unfair merger price.  After years of hard-fought litigation, including two successful appeals to the U.S. Court of Appeals for the Second Circuit, the Sadis team has achieved this settlement, which provides a larger recovery for Dangdang’s investors. 

The $21 million settlement provides investors with a recovery that is a significant percentage of the total alleged damages.  It also provides a total recovery per share that compares favorably with recent settlements of similar cases involving Chinese going-private mergers. Sadis’s Co-Head of Litigation, Samuel J. Lieberman, led Sadis’s team in representing lead plaintiffs in achieving this settlement, together with Partner Ben Hutman, Counsel Clay Hane, and Associate Lily Cron.   If you have any questions about this or any other case, please contact Samuel J. Lieberman at SLieberman@sadis.com 

About Sadis & Goldberg LLP:  Sadis is a New York-based law firm with a nationally recognized securities litigation, shareholder rights, and business divorce practice.  Sadis regularly serves as lead and co-lead counsel in high-profile and precedent-setting cases, and has recovered hundreds of millions of dollars for investors.   We are able to win large recoveries for clients, by focusing on aggressively pushing cases to trial and by leveraging our subject matter expertise.