Minority Investors Secure $21 Million Payout in Dangdang Merger Case

The litigation centered on allegations that Dangdang’s controlling group breached fiduciary duties by prioritizing an internal buyout over a superior third-party offer. Represented by Sadis & Goldberg LLP, the class action survived extensive discovery and two separate appeals to the U.S. Court of Appeals for the Second Circuit, which ultimately compelled the case into arbitration.

Samuel J. Lieberman, a partner at Sadis & Goldberg, noted that the settlement represents a significantly higher recovery percentage than typically seen in similar securities litigation. The legal team, which included Ben Hutman, Claiborne R. Hane, and Lily Cron, pushed the case to the brink of a class certification hearing before reaching the agreement. The resolution concludes a long-standing dispute regarding the valuation of American Depositary Shares and minority stakes during the company’s transition to a private entity.