r/chinastocks
Did you ever get cashed out of a Chinese ADS take-private and feel shortchanged?
Reminder for former DANG shareholders to claim a share of a $21M settlement over the allegedly unfair 2016 take-private deal.
- The company and directors breached fiduciary duties and made misleading statements during the take-private process.
- Shareholders were cashed out at $6.70 per ADS, significantly below the estimated fair value of $8.80.
Heads up for anyone who held E-Commerce China Dangdang (DANG) American depositary shares between March 9, 2016 and September 20, 2016 and got cashed out in its take-private merger. There's a $21M settlement. Apparently, the company, its controlling stockholders, and certain directors breached fiduciary duties and made misleading statements about the fairness of the $6.70-per-ADS buyout price, the independence of the special committee, and plans to relist after going private.
This is a classic China take-private gripe. The recognized loss is pegged at $2.10 per ADS, based on an estimated fair value of $8.80 versus the $6.70 you actually got. Best part: the claim deadline is August 6, 2026, so this one's still open to submit a claim. Fairness hearing is set for August 11, 2026.
Just flagging it since these old ADS cash-out cases are easy to forget about a decade later. Anyone here get squeezed out of DANG in 2016, or dodge the China ADS take-private wave entirely?
A lot of investors probably forgot they even held DANG, so the settlement window could actually help people recover at least part of those losses.