KE Holdings $4.95 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired KE Holdings Inc. American Depository Shares between Nov. 19, 2020, and March 10, 2022, or acquired shares traceable to the company’s follow-on offering registration statement may be eligible to claim a cash payment from a class action settlement.

KE Holdings agreed to pay $4.95 million to settle a class action lawsuit alleging it and related defendants violated federal securities laws by making false and misleading statements and omissions regarding the number of stores and agents on its platform.

Who is eligible to file a claim?

Class members must meet at least one of the following criteria:

• They purchased or otherwise acquired KE Holdings ADS between Nov. 19, 2020, and March 10, 2022, inclusive.
• They acquired KE Holdings ADS traceable to the follow-on offering registration statement.

Additional details

• Investors who only held KE Holdings ADS through a mutual fund are not class members.
• Only direct purchasers or acquirers are eligible to participate in the settlement.
• Both individuals and entities can be class members.

How much is the KE Holdings payout?

The total settlement fund is $4,950,000. The amount each class member may receive depends on several factors:

• The number of valid claims filed
• The number of KE Holdings ADS purchased or acquired during the class period or traceable to the follow-on offering
• The timing of purchases and sales
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average distribution per allegedly damaged ADS is approximately $0.53 before deductions for taxes, notice and administration costs, and attorneys fees and expenses.
• The estimated distribution is approximately $0.34 after deductions. Actual payments may be higher or lower depending on individual claims and the total number of valid claims.

• The settlement administrator calculates each class member’s award based on the recognized loss amount assigned to each transaction. Recognized loss amounts depend on when the investor bought and sold KE Holdings ADS.
• Recognized loss amounts include:
• $0 per share for ADS sold on or before Nov. 15, 2021
• The lesser of $0.50 per share or the difference between $18.70 and the sale price for ADS sold between Dec. 16, 2021, and Dec. 19, 2021
• $0.99 per share for ADS sold between Dec. 20, 2021, and March 9, 2022
• $1.99 per share for ADS held through the close of trading on March 10, 2022

• Class members whose payment would be less than $10 will not receive a payout.
• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.

How to claim a settlement payment

Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Feb. 12, 2026.

Settlement administrator's mailing address: KE Holdings Securities Settlement Claims Administrator, c/o Verita Global, P.O. Box 301171, Los Angeles, CA 90030-1171

Proof or documentation required to submit a claim

• All class members must provide the last four digits of their Social Security or full taxpayer identification number.
• They must also provide purchase, acquisition and sale information, including:
• Trade dates
• Number of shares purchased, acquired or sold
• Total purchase, sale or acquisition price

• Claimants must provide documentation to support their transactions in KE Holdings ADS. Acceptable forms of proof include:
• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the transactional information found in a confirmation slip
• Other documentation the claims administrator deems adequate

Payout options

• Physical check
• Electronic payment

$4.95 million settlement fund

The $4,950,000 settlement fund includes:

• Notice and administration costs: To be determined
• Attorneys fees: Up to $1,650,000
• Attorneys expenses: Up to $125,000
• Lead plaintiff service award: Up to $5,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Deadline to request exclusion: Feb. 6, 2026
• Deadline to file a claim: Feb. 12, 2026
• Fairness hearing: Feb. 27, 2026

When is the KE Holdings Securities Settlement payout date?

The settlement administrator will issue payments to eligible class members after it resolves any appeals and the court grants final approval of the settlement.

Why did this class action settlement happen?

This class action lawsuit alleged KE Holdings and certain defendants made false or misleading statements and omissions about the number of stores and agents on the company’s platform, which allegedly violated federal securities laws.

The plaintiffs claimed these misrepresentations caused investors to purchase or acquire KE Holdings ADS at artificially inflated prices and suffer losses when the truth was revealed.

The defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the costs, risks and delays of further litigation.

Sources

1. Class notice
2. Claim form
3. Settlement agreement