Should I respond to this class action suit for payout?

March 6, 2019 10:43 AM

I bought 45 shares of Alibaba the day after it IPOd. Got a letter about the $75mil class action suit. Is it worth it to submit? I paid about 1/3 above the ipo price within the suit claimed period. What will I get out of it? I usually get $10 checks from “class action” settlements...

Yes, it’s legit, not some scam, seen these before.

posted by anonymous to Work & Money (6 answers total)

This question isn't clear. Should you claim money you're entitled to? I would say yes. I mean unless you're planning to sue separately yourself. If you get a $10 cheque, that's $10 you didn't have before. I'm not seeing a downside.
posted by If only I had a penguin... at 10:45 AM on March 6, 2019 [3 favorites]

Just do it, you may get more.than you think.
posted by Oyéah at 11:29 AM on March 6, 2019

Unless someone here happens to be the Plaintiffs' attorney, we don't have enough information to give you an answer. The Notice should have the contact information for the Plaintiffs' attorney, you should call them and ask your questions.
posted by wuzandfuzz at 11:47 AM on March 6, 2019

I was a defense lawyer who oversaw the administration of a big class action settlement, and I'd say its definitely worth it to submit. Your choices are (a) submit a claim and get some money, (b) do nothing and get nothing, or (c) affirmatively opt out and reserve your right to sue individually (which is not realistic for 45 shares). So unless your time is supremely valuable or the hurdles to submit a claim are giant, take the 30 minutes and get some free money.
posted by AgentRocket at 1:03 PM on March 6, 2019 [4 favorites]

This document gives you the formula for what your claim is tentatively worth; it depends largely on when you sold. A quick review suggests about $4 per share, which would be more than $175 in your case.
posted by AgentRocket at 1:07 PM on March 6, 2019 [2 favorites]

AgentRocket has got it; this is the only money you're ever going to get from this matter unless you sue them personally. You should sign up.
posted by Joey Buttafoucault at 2:37 PM on March 6, 2019