VNet Group $5.88 Million Securities Class Action Settlement

Brandon Richards

Legal Content Writer

Published

June 8, 2026 11:14 AM

Updated

June 8, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired VNet Group Inc. ADSs between March 23, 2022, and Feb. 17, 2023, inclusive, and experienced damages as a result.

Additional details

Both individuals and entities can be class members.
Class members who acquired VNet ADSs through a brokerage firm or other third party are the beneficial owners and may file a claim.
The actual beneficial owner or a legal representative must submit the claim.
Joint owners must each sign the claim form.
Executors, administrators, guardians, conservators, custodians, trustees and legal representatives may submit claims on behalf of others and must provide proof of authority.
Class members must submit a separate claim form for each account.

How much can class members get?

The total settlement fund is $5,875,000. The amount each class member receives depends on several factors:

The number of valid claims submitted
The number of ADSs purchased or acquired during the class period
The timing of each purchase and sale
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 recovery is approximately $0.117 per eligible ADS before deductions.
After estimated deductions of $0.042 per ADS for attorneys' fees, expenses and service awards to plaintiffs, the net average recovery is approximately $0.075 per allegedly damaged ADS.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss assigned to each ADS.
The settlement administrator will calculate each class member's recognized loss based on the purchase date and price, the sale date and price and whether the class member held the ADSs through the corrective disclosure dates:

For ADSs sold before Feb. 13, 2023, the recognized loss is $0.
For ADSs purchased during the class period and sold between Feb. 13, 2023, and Feb. 17, 2023, the recognized loss is the price inflation on the purchase date minus the price inflation on the sale date (see the artificial inflation table on Page 11 of the class notice).
For ADSs purchased during the class period and sold between Feb. 18, 2023, and May 18, 2023, the recognized loss is the lesser of the price inflation on the purchase date or the purchase price minus the 90-day lookback value on the sale date (see the lookback table on Page 12 of the class notice).
For ADSs purchased during the class period and held as of the close of trading on May 18, 2023, the recognized loss is the lesser of the price inflation on the purchase date or the purchase price minus $3.33, the average closing price during the 90-day lookback period.

The settlement administrator will set any recognized loss that calculates to a negative number to $0.
If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a VNet securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form (pages 15-21 of the settlement notice) and mail it to the settlement administrator. The claim deadline is Aug. 20, 2026.

Settlement administrator's mailing address: VNet Securities Settlement, c/o Strategic Claims Services, 600 N. Jackson St., Suite 205, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holdings and transaction information, including:

Number of VNet ADSs held as of the close of trading on March 22, 2022
Trade dates for purchases, acquisitions and sales from March 23, 2022, through May 18, 2023
Number of ADSs purchased, acquired or sold
Total purchase, acquisition or sale price
Number of VNet ADSs held as of the close of trading on May 18, 2023

Class members must also provide documentation to support their transactions in VNet ADSs. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Authorized statements from a broker, financial advisor or financial institution containing the transactional information found in a confirmation slip

Payout options

Physical check

$5.88 million settlement fund

The $5,875,000 settlement fund includes:

Settlement administration costs: Up to $200,000
Attorneys' fees: Up to $1,958,333.33
Attorneys' expenses: Up to $100,000
Service awards to plaintiffs: Up to $15,000 each ($30,000 total)
Payments to eligible class members: Remainder of the fund

Important dates

Opt-out deadline: Aug. 6, 2026
Deadline to file a claim: Aug. 20, 2026
Fairness hearing: Aug. 27, 2026

When is the VNet securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged VNet Group Inc. and certain officers made materially false and misleading statements and omitted material facts regarding the company's financial operations and transactions involving Sheng Chen. The plaintiffs claimed these statements artificially inflated the price of VNet ADSs and caused investor losses when corrective disclosures entered the market.

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