Enterprising Investor
2年前
Renren Provides Update on Special Cash Distribution For Settlement Regarding Shareholder Derivative Litigation (12/05/22)
PHOENIX, Dec. 5, 2022 /PRNewswire/ -- Renren Inc. (NYSE: RENN) ("Renren" or the "Company"), an operator of several US-based SaaS businesses, today announced an increase in the per share amount to be paid in the special cash distribution, that was announced on November 3, 2022, relating to the settlement contemplated by the Stipulation of Settlement, dated as of October 7, 2021 and as amended on May 27, 2022.
The amount of the special cash distribution was previously announced to be US$0.7013 per Renren Class A ordinary share, or US$31.5585 per Renren American Depositary Share ("ADS"). Each one (1) ADS currently represents 45 Renren Class A ordinary shares. The special distribution amount, in each case, is prior to the deduction of applicable taxes, fees, and expenses. As a result of interest earned on the settlement account, more funds will be available for distribution from the settlement account on a pro-rata basis, and the amount of the special cash distribution will now be US$0.7026 per Renren Class A ordinary share, or US$31.6170 per Renren ADS; in each case, prior to deduction of applicable taxes, fees and expenses.
Additionally, Epiq Class Action & Claims Solutions, Inc., as administrator for the settlement funds, will now be responsible for paying the special distribution to record date holders of Renren ordinary shares and transferring settlement funds to the Depositary Trust Clearinghouse & Company for subsequent disbursement to ADS owners. Accordingly, Citibank, N.A., depositary for Renren's ADS program, will no longer charge a special cash distribution fee of US$0.05 per ADS held pursuant to the Renren ADS Deposit Agreement (as amended).
The special cash distribution is still expected to be paid on December 21, 2022. Due bill period will run from November 18, 2022 to December 21, 2022. Due bills track trades of stock in the interim period and ensure the right stockholder receives the special distribution. In order to receive the special cash distribution, you must continue to hold your Renren ADSs at least through the market close on the special cash distribution payment date (i.e. December 21, 2022).
According to the NYSE, the Ex-Dividend date for NYSE trading will be December 22, 2022. The Ex-Dividend date is the date on which the NYSE will reset the opening trading price of Renren's ADSs to reflect the payment of the special cash distribution. If you buy Renren ADSs on or after the Ex-Dividend date, you will not receive the special cash distribution.
Renren expects that trading for its ADSs will be extremely volatile given the per ADS value of the special cash distribution compared to the current trading price of Renren's ADS. In particular, volatility is expected to be high on and around December 21, 2022, the last date on which purchasers of ADSs on the NYSE will obtain the right to receive the special cash distribution with respect to the purchased ADSs, and on and around December 22, 2022, the Ex-Dividend date.
The trading price for Renren's ADSs on the ex-dividend date is expected to be much lower than the closing price on the last trading date before the ex-dividend date, to reflect the amount of the special cash distribution. To the extent that Renren's ADSs trade below US$1.00 per ADS for an extended period of time, or at a price viewed to be an abnormally low selling price under NYSE rules, Renren's ADSs may be suspended from trading on the NYSE and ultimately delisted.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates several US-based SaaS businesses including Chime, a CRM and Marketing Automation platform, and Trucker Path, a trip-planning and business app for long-haul truckers. Renren's ADSs, each currently representing 45 Class A ordinary shares of the Company, are traded on the NYSE under the symbol "RENN".
https://www.prnewswire.com/news-releases/renren-provides-update-on-special-cash-distribution-for-settlement-regarding-shareholder-derivative-litigation-301694913.html
downthehatch
2年前
Now we know that owners of RENN on Nov 21 will get a payment of $31.50/share on Dec 21, 2022.
So the question now becomes, what is RenRen (RENN) worth, on it's own, as an operating company?
It has a couple of businesses, which appear to generate some revenue and maybe some profits. Chime, a CRM for real estate professionals, and Trucker Path, the number one site for truckers to interact and do trip planning. They also have some investments in China, including in Kaixib, the used car dealer.
Is the ongoing business worth more than $1?
If so, the stock is still underpriced.
My gut tells me the ongoing company is worth about $2-3.
Enterprising Investor
2年前
Renren Declares Special Cash Distribution for Settlement Regarding Shareholder Derivative Litigation (11/03/22)
PHOENIX, Nov. 3, 2022 /PRNewswire/ -- Renren Inc. (NYSE: RENN) ("Renren" or the "Company"), an operator of several US-based SaaS businesses, today announced that its board of directors declared a special cash distribution in connection with the settlement contemplated by the Stipulation of Settlement, dated as of October 7, 2021 and as amended on May 27, 2022 (the "Stipulation"). As previously announced, the New York State Supreme Court, Commercial Division entered the Final Order and Judgment on June 9, 2022 (the "June 9 Final Order"), which, among other things, approves the Stipulation and the transactions contemplated thereby. The June 9 Final Order became final as of October 20, 2022 following a withdrawal of appeal by certain parties.
The special cash distribution will be paid from a settlement account funded by the Defendants (as defined in the Stipulation) in its entirety without any contribution from Renren and thus will not impact Renren's financial position, liquidity or profitability. Renren will continue to operate its several SaaS businesses before and after the special cash distribution, and it intends to remain a public company listed on The New York Stock Exchange (the "NYSE"). A total of US$300 million has been contributed into the settlement account by the Defendants. After reductions for certain settlement expenses, including attorneys' fees and expenses awarded by the court to the plaintiffs' counsel, approximately US$247.1 million will be available for distribution from the settlement account.
The special cash distribution is payable to all holders of Renren's Class A ordinary shares (including those in the form of Renren American Depositary Shares ("ADSs"), each one (1) ADS currently representing 45 Renren Class A ordinary shares) of record as of 5:00 p.m. Eastern Time on November 21, 2022 (the "Record Date"), other than the Defendants and D&O Releasees (each as specifically identified in the Stipulation). The amount of the special cash distribution is US$0.7013 per Class A ordinary share, or US$31.5585 per ADS, in each case, prior to deduction of applicable taxes, fees and expenses. Pursuant to the Renren ADS Deposit Agreement (as amended), the Depositary will charge a special cash distribution fee of US$0.05 per ADS held, which will be borne by the holders of ADSs.
The special cash distribution is expected to be paid on December 21, 2022. Due bill period is expected to run from November 18, 2022 to December 21, 2022. Due bills function to track trades of stock in the interim period and ensure the right stock holder receives the special distribution. In order to receive the special cash distribution, you must continue to hold your Renren ADSs at least through the market close on the special cash distribution payment date, which is expected to be December 21, 2022.
According to the NYSE, the Ex-Dividend date for NYSE trading will be December 22, 2022. The Ex-Dividend date is the date on which the NYSE will reset the opening trading price of Renren's ADSs to reflect the payment of the special cash distribution. If you buy Renren ADSs on or after the Ex-Dividend date, you will not receive the special cash distribution.
Renren expects that trading for its ADSs will be extremely volatile given the per ADS value of the special cash distribution compared to the current trading price of Renren's ADS. In particular, volatility is expected to be high on and around December 21, 2022, the last date on which purchasers of ADSs on the NYSE will obtain the right to receive the special cash distribution with respect to the purchased ADSs, and on and around December 22, 2022, the Ex-Dividend date.
The trading price for Renren's ADSs on the ex-dividend date is expected to be much lower than the closing price on the last trading date before the ex-dividend date, to reflect the amount of the special cash distribution. To the extent that Renren's ADSs trade below US$1.00 per ADS for an extended period of time, or at a price viewed to be an abnormally low selling price under NYSE rules, Renren's ADSs may be suspended from trading on the NYSE and ultimately delisted.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates several US-based SaaS businesses including Chime, a CRM and Marketing Automation platform, and Trucker Path, a trip-planning and business app for long-haul truckers. Renren's ADSs, each currently representing 45 Class A ordinary shares of the Company, are traded on the NYSE under the symbol "RENN".
https://www.prnewswire.com/news-releases/renren-declares-special-cash-distribution-for-settlement-regarding-shareholder-derivative-litigation-301667037.html
Enterprising Investor
2年前
Renren Announces Effectiveness of Settlement Regarding Shareholder Derivative Litigation (10/26/22)
Renren Inc. (NYSE: RENN) ("Renren" or the "Company"), a SaaS company, today announced that the Final Order and Judgment entered by the New York State Supreme Court, Commercial Division on June 9, 2022 (the "June 9 Final Order"), which was furnished by the Company to the U.S. Securities and Exchange Commission (the "SEC") on Form 6-K on June 10, 2022, became effective on October 20, 2022 following a withdrawal of appeal by certain parties. The June 9 Final Order approves, among other things, the Stipulation of Settlement dated October 7, 2021, as amended by an Amendment to Stipulation of Settlement dated May 27, 2022 (in combination the "Stipulation"). The Stipulation settles the consolidated shareholder derivative lawsuits captioned In re Renren, Inc. Derivative Litigation, Index No. 653594/2018 (Sup. Ct. N.Y. Cty.).
Pursuant to the Stipulation, the Net Settlement Amount (as defined in the Stipulation) will be distributed to all holders of Renren's Class A ordinary shares (including those in the form of Renren American Depositary Shares) other than the Defendants and D&O Releasees (each as specifically identified in the Stipulation).
The Company plans to announce the exact amount distributable and the record date in due course.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates several U.S.-based SaaS businesses including Chime, an all-in-one CRM and sales acceleration platform designed to help real estate professionals close more deals faster, and Trucker Path, a suite of applications and dispatch services commercial truck drivers use to plan trips, navigate, and operate their business. Renren's ADSs, each currently representing 45 Class A ordinary shares of the Company, are traded on NYSE under the symbol "RENN".
https://www.prnewswire.com/news-releases/renren-announces-effectiveness-of-settlement-regarding-shareholder-derivative-litigation-301660425.html
Enterprising Investor
2年前
Renren Announces Board Changes (10/11/22)
PHOENIX, Oct. 11, 2022 /PRNewswire/ -- Renren Inc. (NYSE: RENN) ("Renren" or the "Company"), a SaaS company serving multiple global industries, today announced the appointment of two new independent directors to its board of directors (the "Board"), Mr. James M. Dumler and Mr. James D. Reed, effective October 11, 2022. Ms. Hui Huang and Mr. Chuanfu Wang have concurrently resigned from their positions as a director of the Company and as members of the three committees of the Board. Ms. Huang and Mr. Wang resigned for personal reasons, and their resignation is not related to any disagreement with the Company on any matter relating to the Company's operations, policies, or practices.
After the changes, the Board will continue to consist of five members, three of whom are independent directors. The audit committee will consist of Mr. Lin Cong and Mr. James D. Reed, with Mr. Reed as the chairman; the compensation committee will consist of Mr. Lin Cong and Mr. James M. Dumler, with Mr. Cong as the chairman; and the corporate governance and nominating committee will consist of Mr. Lin Cong, Mr. James M. Dumler, and Mr. James D. Reed, with Mr. Dumler as the chairman.
Mr. Dumler has more than twenty years of experience in top management and board director roles with various enterprises and industries, including Koch Industries, CenterPoint Energy, Republic Financial (private equity), Purina Mills, and FJ Management. Mr. Dumler holds an MBA from Duke University.
Mr. Reed served as CEO and director of USA Truck Inc (NASDAQ: USAK) from 2016 through September 2022 and brings with him more than two decades of multi-faceted experience in trucking, logistics, finance, and business development. He previously served as chief financial officer of Interstate Distributor Company, as well as president of its subsidiary, Interstate Distributor Logistics. Mr. Reed's extensive experience includes more than 15 years of leading finance in public companies.
"On behalf of the Board of Directors, I would like to express my gratitude to Ms. Huang and Mr. Wang for their valuable contributions to Renren during their tenure on the Board," said Renren's Chairman and Chief Executive Officer, Mr. Joseph Chen. "We are delighted to have Mr. Dumler and Mr. Reed join our Board as independent directors. Their extensive executive experience, financial management savvy, and industry expertise will bring significant value to Renren and its shareholders."
About Renren Inc.
Renren Inc. (NYSE: RENN) operates several U.S.-based SaaS businesses including Chime, an all-in-one CRM and sales acceleration platform designed to help real estate professionals close more deals faster, and Trucker Path, a suite of applications and dispatch services commercial truck drivers use to plan trips, navigate, and operate their business. Renren's ADSs, each currently representing 45 Class A ordinary shares of the Company, are traded on NYSE under the symbol "RENN".
https://www.prnewswire.com/news-releases/renren-announces-board-changes-301645596.html
downthehatch
2年前
Appeal was filed, which will have the affect of delaying by several months the payment of the settlement funds.
As from the very first settlement about a year ago, when it was rejected by Judge Borok, I have been saying that his original decision misunderstood the nature of a shareholders derivative action.
A shareholders derivative action is filed ON BEHALF OF THE CORPORATION, and not on behalf of a group of shareholders at a particular point in time.
The appeal is based on that same mistaken notion of a shareholder's derivative action, and will not prevail.
Had the appellants grought their own action, at or around the time of the corporate "looting" as they call it, they might have grounds to be compensated.
But they did not.
Instead a group filed the shareholder's derivative action, and that means that the law cannot make an award to any entity EXCEPT the corporation itself, with provisions excluding the shareholders who perpetrated the wrongful acts. That's what the settlement does, and I have no doubt it will be upheld on appeal.
It's not a close call. For those who still want to take advantage of this situation, the share price may slip a bit here, and you can make the difference between the share price and the payout amount, which is calculated to be about $31.00 a share, plus the residual value of the company shares, that you will still own after the payout.
It can only be hoped that the Court of Appeals expedites this appeal and its decision, as this is a pretty easy call.
Chrysanthemis
3年前
Thanks! Having read through the judgment, I think we can now narow down the potential outcome in time and magnitude.
As far as I understand, the settlement is now approved and the proceeds will be distributed to those eligible shareholders who own Class A shares or ADS as of the Record Date. The Record Date is defined as, basically, as soon as possible after the Effective Date, which in turn is defined as the first date on which approval of the Settlement by the Court has become Final.
Once the specific date of the Record Date is determined, Renren shall file a Form 6-K and publicly announce that date.
It turns out that the judge did not budge from his position stated in April, namely that 17.5% would be the upper limit of lawyer fees acceptable. This translates into a fee for the Plaintiff's counsel of 52.5 MUSD out of the 300 MUSD of the settlement.
Moreover, the judgment accepts to lawyers' fees for the Shareholder Coalition Counsel of 277 kUSD (rounded down to 275 kUSD in the actual order), but rejects a request for 96 kUSD from the CRMC counsel. A total administrative fee of 166 kUSD plus a possible buffer of 25 kUSD is also approved.
And that seems to be it.
Two uncertain factors remain. First, the administrative fee buffer may not be (fully) used, and the judge can later accept to increase it, but I presume the effect of this will not be material.
Of more concerns is a pending request from Renren itself to be compensated for its legal fees; the amount ranges from 2.2 MUSD to 3 MUSD.
It is reasonable to assume that the number of eligible ADS will be close to 7.754.623 (Z), see my earlier posts.
Putting all of this together, we obtain a per-ADS compensation of at most:
(300 MUSD - 52.5 MUSD - 277 kUSD - 166 kUSD) / Z = 31.86 USD.
In a negative scenario, where Renren would be granted the 3 MUSD it seeks and the administrative fee would exceed the buffer and amount to, say, 300 kUSD), the payout becomes 31.46 USD per share.
So it seems there is still some money on the table at the current share price level.
Enterprising Investor
3年前
New York Court Approves $300 Million Settlement Benefitting Minority Shareholders in Renren Derivative Litigation Announces Reid Collins (6/09/22)
Settlement of at least $300 million is among largest ever shareholder derivative recoveries
Plaintiffs overcame novel issues of jurisdiction and standing in creating precedent-setting case law to hold foreign companies and actors accountable in U.S. courts
As Lead Counsel, Reid Collins successfully prosecuted groundbreaking claims against Renren insiders
NEW YORK, June 9, 2022 /PRNewswire/ -- Today the New York State Supreme Court granted approval of a direct pay cash settlement totaling at least $300 million resolving the In re Renren, Inc. Derivative Litigation (NYSE:RENN), one of the largest cash settlements of a derivative action in history. (The aggregate cash payment to Renren's minority shareholders and ADS holders may exceed $300 million depending on the final determination of the number of shares and ADSs held by non-Defendants). The action alleges a complex scheme by Renren insiders to take the company's billion-dollar investment portfolio for themselves.
Litigation powerhouse Reid Collins & Tsai LLP, Lead Counsel for the derivative plaintiffs, originally announced the terms of the settlement in October 2021.
Reid Collins Founding Partner William T. Reid, IV on the resolution of the Renren litigation: "This is an extraordinary result by any measure. It is very rare to settle a case for more than the damages that we originally pleaded. Yet indeed, from the vantage point of minority shareholders, we have recovered more for them in this direct pay settlement than the damage claim we set forth in the complaint. Obtaining jurisdiction over these foreign defendants was no small task, but obtaining derivative standing was an even greater achievement. What little New York law existed on establishing derivative standing under Cayman law was adverse, but the facts of this case and a thorough presentation of Cayman law nonetheless allowed us to establish that the minority were in fact entitled to pursue the company's claim under the 'fraud on the minority' exception to the general rule against derivative standing. I could not be more proud of what we have accomplished in Renren, and of our clients, including Heng Ren Silk Investments, LLC in taking on this significant and important challenge."
The shareholder derivative suit arises from a highly unusual series of interrelated transactions through which Renren's allegedly corrupt insiders took Renren's investment portfolio for themselves in 2018 to the detriment of minority shareholders. The complaint centers on alleged breaches of fiduciary duty in connection with the transfer of Renren's most valuable assets, including a substantial stake in fast-growing lender Social Finance, Inc. ("SoFi") — for far less than fair market value — to a private company, Oak Pacific Investments ("OPI"), which is owned and controlled by Renren's CEO Joseph Chen and other controlling shareholders. Chen and affiliates stood on all sides of these transactions as major investors and/or directors in Renren, OPI, and SoFi itself, facilitated by Duff & Phelps, LLC, a financial advisor to a special committee of Renren's board of directors, who it is alleged aided and abetted these breaches of fiduciary duty
"We are very pleased to have achieved a positive outcome for all minority shareholders," said Alexander Shoghi, portfolio manager at Oasis Management.
"This is an important message American investors are sending to Chinese companies on our stock markets," said Peter Halesworth, founder and manager of Heng Ren. "U.S. shareholders will fight raw deals of bad actors from China in our stock markets."
Precedent-Setting Case Will Have Long-Term Impacts for Cross-Border Fraud and Financial Misconduct
In May 2020, Reid Collins defeated all motions to dismiss filed by the original defendants. In March 2021, the Appellate Division, First Judicial Department of New York State Supreme Court affirmed the trial court's denial of all the motions to dismiss and rejected defendants' arguments over personal jurisdiction and contending that plaintiffs lack standing under Cayman Islands law. In April 2022, the New York State Supreme Court took the rare step of attaching all of the assets that OPI received in the 2018 transaction and required any sales proceeds up to $560 million be deposited in a New York escrow account.
Plaintiffs faced significant legal challenges to acquire U.S. jurisdiction over multiple foreign defendants and establish derivative standing under Cayman law. After an extensive investigation and litigation, Plaintiffs presented the complex details of the transactions and the conduct of the far-flung participants to the court, building a jurisdictional theory with which the court agreed completely and was affirmed on appeal. 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 on U.S. exchanges.
The case is In re Renren, Inc. Derivative Litigation, Index No. 653594/2018 (N.Y. Sup. Ct.). Reid Collins, representing derivative plaintiffs as Lead Counsel in this action (alongside co-counsel Grant & Eisenhoffer P.A., Gardy & Notis, LLP, and Ganfer Shore Leeds & Zauderer LLP), successfully litigated these novel claims against an array of law firms, including: Skadden, Arps, Slate, Meagher & Flom LLP; Paul, Weiss, Rifkind, Wharton & Garrison LLP; McDermott, Will & Emery LLP; Morrison & Foerster LLP; Orrick, Herrington & Sutcliffe LLP; Goodwin Procter LLP; Holland & Knight, LLP; and Winston & Strawn LLP.
About Reid Collins
Reid Collins & Tsai LLP is one of the nation's leading plaintiffs' trial firms, litigating complex business disputes and achieving billions of dollars in settlements and judgments for its clients. Its team is comprised of accomplished trial lawyers who have extensive experience prosecuting financial fraud and corporate malfeasance cases, bankruptcy and insolvency related litigation, professional liability claims, and cross-border disputes. The firm represents fund managers, investor groups, trustees, receivers, liquidators, international banks, companies, governmental entities, and individuals in federal and state courts across the country.
For more information visit www.reidcollins.com
https://www.prnewswire.com/news-releases/new-york-court-approves-300-million-settlement-benefitting-minority-shareholders-in-renren-derivative-litigation-announces-reid-collins-301565429.html
Chrysanthemis
3年前
Thanks for flagging this new document. Indeed, we seem to be heading for a settlement approval on June 8th and a distribution of at least 29 USD, but quite likely somewhat more.
The legal counsel's memorandum of May 13th (doc 1022) argues that 22.5% would be a suitable fee instead of the 33% initially sought; it is furthermore stated that this would give rise to a distribution of 29.98 USD per ADS before expenses.
Incidentally, calculating backwards from this distributed amount of 232.5 MUSD after the 22.5% cut gives a number of ADS entitled to take part of the distribution of ((232.5 MUSD / 29.98 USD = ) 7.755.170 ADS, quite close to the number Z of my earlier posts.
Now, in the hearing of April 14th, the judge stated that 17.5% would be the upper limit where too much would be attributed to the legal council as fees. So we will end up somewhere between 17.5% and 22.5%.
It is possibly a coincidence that the round number 20% lies exactly at the mid-point of this interval, but on the other hand, one should never underestimate the attraction of round numbers.
Assuming that the judge would draw the line at 20%, the distribution would increase by almost one dollar compared to the 22.5% scenario; this takes us to almost 31 USD per ADS before fees and more than 30 USD net of fees and expenses.
Chrysanthemis
3年前
Thanks for this alert.
The most interesting facts I found among these filings is that the Plaintiff's law firms now argue for a significant lower fee: 22.5% of the total, instead of the 33% that they sought initially.
Furthermore, they provide an interesting quantified assessment of the outcome, should the settlement and this fee be approved:
Here, by contrast, distributions to Renren Shareholders, net of a 22.5% fee, will far exceed the value of their investments in Renren during the relevant period. Given the minimum per ADS distribution under the defined “Settlement Amount,” the distribution net of fees and expenses will exceed $29 per ADS (and will be $29.98 per ADS, before expenses).
Now, the judge stated in the hearing (14 April) that
...the upper limit of where we would start to be allocating too much settlement proceeds to the lawyers such that it would be unfair would be 17-and-a-half percent or 52-and-a-half million dollars. That's where I think the range is.
On the assumption that the settlement will be approved - and the judge has in the same hearing declared his willingness to do so - it seems unlikely to me that the fees will go beyond the 22.5%, but the judge may possibly lop off a few percent from this.
In this case, we would face a payment of at least 29 USD per share, and possibly up to a few dollars more. On this basis, and knowing that there is also some residual value in the stock due to its Kaixin holding, I do not consider the current stock price (27.7 USD) excessive.
Chrysanthemis
3年前
Dear downthehatch,
thanks for drawing my attention to the new developments. I went to have a look on the web site, and the latest filings are intriguing.
The most interesting part is, in my view, the transcript from a hearing on April 14th (incidentally :) the day when the share price took off), from which I quote the following statements from the judge (my emphasis added):
"I understand that there are going to be some objections...But I'm prepared to, understanding what those objections are now and having reviewed them, I'm prepared to approve the settlement over those objections."
"The settlement agreement will provide for distribution of the settlement to the coalition shareholders based on their current holdings."
"They [the plaintiff's lawyers] asked me to think about it [the legal fee], and I have. I spent last night, most of the night, thinking about it. And I think that the upper limit of where we would start to be allocating to much settlement proceeds to the lawyers...would be...52-and-a-half million dollars."
"...we know that certain of the shareholders who have standing, who conflate standing with right to recovery, will want to go to the Appellate Division, and may. And I would like to reduce the potential issues so that the only issue that the Appelate Division is looking at is...that they're entitled to recovery based on what they held at the record date, which is simply not tenable as a matter of law."From all this I surmise that the judge has moved from his previous position, now agrees that the derivative action cannot benefit former shareholders, and is prepared to approve a judgment which gives roughly 245 MUSD to the Renren shareholders, except the Defendants and their Directors.
Which translates into a payment of roughly:
245 MUSD / Z = 31.51 USD per ADR.
[Z = 7.754.623, see my previous post https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166489154 ]
And on that basis, it is not difficult to understand that the share price has been up towards the 30 USD level.
I understand that the judge asked for limited changes to the settlement and that subsequently the plaintiffs tried to negotiate such changes with the defendants, who refused to play ball.
This led to the most recent motion from the plaintiffs to renew/reargue the motion to approve the settlement.
And with the most recent sounds from the judge, it seems quite likely to me that this will happen.
downthehatch
3年前
We now see all the filings made on April 29, which essentially are a request by Plaintiff's counsel for the Court to reconsider its earlier ruling rejecting the settlement, or allowing Plaintiff to re-argue the case, and have the judge enter a new ruling. Plaintiffs focus on the fact that a derivative action must benefit current shareholders. The proof of this is the fact that if the case were to continue to trial, and a judgment be rendered for Plaintiffs, the award would be to the corporation- because a derivative action is one filed "on behalf of" the corporation.
The brief also makes clear that the determination of an appropriate fee is separate from the question of whether the settlement should be approved, and is NOT a reason to reject the settlement.
It is a well-written brief and makes good sense. Offers Judge Borrock a chance to undo his earlier ruling, which would likely not have held up on appeal. (Because the law on derivative actions is quite clear: current shareholders benefit from a successful derivative action, not former shareholders.)
Favorable ruling on this filing would be quite positive for the share price, obviously.
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