Chinese social media platform Renren Inc. and its shareholders have reached at least $300 million agreement to resolve their claims, making it one of the biggest cash settlements in the history of U.S. shareholder derivative litigation.

Reid Collins & Tsai, Grant & Eisenhofer, Gardy & Notis and Ganfer Shore Leeds & Zauderer acted as the plaintiffs' lawyers, and Skadden, Arps, Slate, Meagher & Flom, McDermott Will & Emery and Paul, Weiss, Rifkind, Wharton & Garrison were defense lawyers.

The case stemmed from Renren’s 2011 IPO on the New York Stock Exchange. At the time, Renren has more than 100 million users and was known as the “Facebook of China.” Its user engagement promptly plunged to 45 million in 2013. So did profits. Renren’s controlling shareholders then bought stakes elsewhere, mostly in startups. Their biggest bet was a nearly $250 million investment in the peer-to-peer lending platform Social Finance.

The plaintiffs sued the controlling shareholders in 2019 of complex fraud, executed through a web of spinoffs, to siphon hundreds of millions of dollars away from minority shareholders.

The proposed settlement must still be approved by New York State Supreme Court Justice Andrew Borrok of Manhattan.