Renren’s $300 Million Settlement Over SoFi Stake Is Rejected
- N.Y. judge declined to sign off on the deal reached in October
- Suit said Renren founders, Softbank engaged in self-dealing
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Renren Inc.’s $300 million settlement with a group of investors who accused its co-founders of self-dealing was rejected by a New York state judge, sending its U.S. share price tumbling.
The Chinese social media company, its co-founders Joseph Chen and David Chao, and Softbank Group Corp. said in October they had agreed to settle claims in a 2018 lawsuit accusing them of spinning off Renren’s most valuable assets at artificially low prices. That included a large stake in San Francisco-based personal finance startup Social Finance Inc., which went public through a blank-check merger in June.