Dangdang Investors Can Arbitrate Take-Private Merger Claims

E-Commerce China Dangdang Inc. investors got the greenlight to arbitrate certain claims against the online retailer and its leaders over a 2016 take-private merger, a federal judge ruled.

The case, which centers on allegations that Dangdang paid below market to buy back its American Depositary Shares in 2016, will be stayed pending the completion of arbitration proceedings, Judge Katherine Polk Failla said in her order entered Wednesday in the US District Court for the Southern District of New York.

“Plaintiffs are thrilled with the Court’s decision, which allows us to aggressively pursue this case in arbitration to win a recovery ...