New York Appellate Court Upholds Renren Derivative Litigation, Rejects Insider Defendants’ Arguments

NEW YORK--(BUSINESS WIRE)--National trial boutique Reid Collins announces a major win for the Plaintiffs in the In re Renren, Inc. Derivative Litigation, pending in New York State Court alleging a complex scheme by Renren insiders to squeeze out minority shareholders and take the company’s billion-dollar investment portfolio for themselves.

In May 2020, Reid Collins defeated all five motions to dismiss filed by the defendants. On March 18, 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.

The shareholder derivative suit arises from a highly unusual series of interrelated transactions through which Renren’s allegedly corrupt insiders took Renren’s portfolio for themselves in 2018. The complaint asserts claims for, among other things, breaches of fiduciary duty in connection with the transfer of Renren’s most valuable assets — for far less than fair market value — to a private company owned and controlled by Renren’s CEO Joseph Chen and other controlling stockholders, including affiliates of SoftBank Group Corp. and DCM Ventures.

The complaint seeks more than $500 million in damages.

The case is captioned In re Renren, Inc. Derivative Litigation (Heng Ren Silk Road Inv. LLC and Oasis Inv. II Master Fund Ltd., derivatively on behalf of Renren, Inc. v. Chen, et al.,) No. 653294/2018 (N.Y. Sup. Ct.)

About Reid Collins

Reid Collins & Tsai LLP is one of the nation’s leading plantiffs’ 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, including former federal prosecutors, 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, and individuals in federal and state courts across the country.

For more information visit www.reidcollins.com

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