Reid Collins recordsdata amended and extra grievance in Renren By-product Litigation, including Softbank and Sofi
NEW YORK–(BUSINESS WIRE) – Reid Collins, a national litigation firm of the plaintiff, announced today that it has filed an amended and supplementary complaint in the Renren Derivative Action pending in the New York State Supreme Court, in which the new defendant Softbank Group Capital Limited (“Softbank GCL “) (SFTBY) have been added. and Social Finance, Inc. (“SoFi”) (IPOE) and additional claims.
The shareholder derivatives lawsuit arises out of the alleged embezzlement of a billion dollar investment portfolio of Renren, Inc. (“Renren”) (RENN) through a sham spin-off that includes a number of extremely unusual transactions. The complaint asserts claims including violations of fiduciary duty related to the transfer of Renren’s most valuable assets, including a significant stake in SoFi, to a private company, Oak Pacific Investments (“OPI”), owned by Renren’s and controlled by Renren, CEO Joseph Chen and SoftBank GCL affiliates, including Renren-Insider. Chen and SoftBank GCL’s affiliates stood on all sides of these transactions as primary investors and / or directors in Renren, OPI and SoFi themselves.
Reid Collins co-founder Bill Reid stated that the amended pleadings adding the new defendants and additional injunctive relief against the existing defendant OPI are warranted as the defendants continue to allegedly act themselves and know they are on involved in fraudulent promotions. The new allegations allege that, despite pending litigation over SoFi stocks wrongly acquired by Renren, Chen and SoftBank GCL have deliberately orchestrated fraudulent transfers of 17 million of those SoFi stocks in an effort to further enrich themselves and drive future efforts the plaintiff to thwart the collection of judgments. The subsidiaries of Chen and SoftBank GCL served on the boards of both OPI and SoFi. Because of the conflicting, fraudulent promotions, SoFi was effectively able to buy back its shares at less than half of its fair value. SoFi recently announced a proposed business combination with a SPAC that values SoFi at approximately $ 6.6 billion.
In May 2020, the Reid Collins team on Renren’s behalf denied attempts to dismiss this derivative lawsuit. The court issued a 71-page order denying all disapproved motions by insiders and others involved in the transactions in question.
The complaint claims more than $ 500 million in damages.
The case is entitled In re Renren, Inc. Derivative Litigation (Heng Ren Silk Road Inv. LLC and Oasis Inv. II Master Fund Ltd., derivative on behalf of Renren, Inc. v. Chen et al.) No. 653294/2018 (NY Sup. Ct.)
About Reid Collins
Reid Collins & Tsai LLP is one of the country’s leading plaintiff litigation firms, litigating complex business disputes and reaching billions in settlements and judgments for its clients. The team is made up of seasoned litigation attorneys, including former federal attorneys, who have extensive experience in prosecuting financial fraud and corporate errors, bankruptcy and bankruptcy disputes, professional liability claims, and cross-border disputes. The firm represents fund managers, investor groups, trustees, recipients, liquidators, international banks, corporations and individuals in federal and state courts across the country.
More information is available at www.reidcollins.com