Alibaba Group agreed to pay US$433.5 million to Settle Shareholder Class Action Lawsuit

Alibaba ADR(NYSE:BABA) issued an announcement on October 25, 2024, agreeing to pay US$433.5 million to settle a shareholder class action lawsuit. The company denies any allegations of fault, liability, wrongdoing, or damages. They entered into the settlement to avoid the costs and disruptions of further litigation.

This case highlights the importance of investing in regulated markets rather than pinning hopes on fraudulent markets. In fraudulent markets, various practices such as financial fraud and information disclosure violations can lead to huge losses for investors, who can only bear the consequences themselves and have no place to seek compensation.