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DANG.US

id: 1978

E-Commerce China Dangdang Inc. ($DANG) $21M Investor Settlement

Eligible claimants can submit their claims for compensation.

$21,000,000

Cash Settlement

1:16-cv-08759

Case number

03/09/2016

Class period Start

09/20/2016

Class period End

08/06/2026

Claim deadline

E-Commerce China Dangdang agreed to a $21 million settlement resolving claims over alleged misstatements and fiduciary-duty breaches tied to its 2016 going-private merger.

Outline:

Dangdang agreed to settle claims tied to its 2016 going-private merger. The case focused on former ADS holders who were cashed out in the transaction. Investors alleged the merger process and price were unfair. 

Timeline:
July 9, 2015: The Controlling Group submitted an offer to acquire Dangdang at $7.81 per ADS.
March 9, 2016: iMeigu Capital Management made a competing offer of $8.80 per ADS.
May 28, 2016: Dangdang entered into the merger agreement at $6.70 per ADS.
September 20, 2016: The merger closed and former Dangdang ADS holders were cashed out.
November 10, 2016: Claimants filed the federal action in the Southern District of New York.
November 21, 2025: The parties accepted a mediator’s proposal to settle the entire action for $21 million.
Background:

E-Commerce China Dangdang Inc. was a China-based e-commerce company whose ADSs traded in New York. The case arose from a going-private merger that cashed out former minority ADS holders at $6.70 per ADS.

Investors alleged that the merger price was unfair because a competing third-party offer valued Dangdang at $8.80 per ADS. They also alleged that the Controlling Group benefited from a flawed process while holding substantial voting power.

The complaint claimed that the Special Committee’s process was not independent because its legal counsel allegedly had conflicts. Investors also alleged that defendants misrepresented that the transaction was fair to unaffiliated security holders.

The complaint further alleged that Dangdang later attracted interest at a valuation far above the merger valuation, supporting investors’ claim that the cash-out price was too low. Defendants denied wrongdoing and liability, and agreed to settle.

What Can Investors Expect Now?

E-Commerce China Dangdang agreed to a $21 million settlement resolving claims over alleged misstatements and fiduciary-duty breaches tied to its 2016 going-private merger.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Accepting Claims

Alleged Offence

Misleading Statements,

Fraud,

Failure to Disclose,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management,

Shareholder

Security Type

Depository Securities (ADS, ADR, GDR)

Trade Direction

Long

Payout per Share

0.41

Filing date

11/10/2016

Plaintiffs

Joe Fasano; Altimeo Optimum Fund

Attorneys

Sadis & Goldberg LLP

Defendants

Guoqing Li ; Peggy Yu Yu ;

Administrator

EPIQ

Exclusion deadline

07/21/2026

Objection deadline

07/21/2026

Hearing deadline

07/21/2026

Attorney fee

$8,800,000

Trades matching type

FIFO

Frequently Asked Questions

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