Moatable Inc ADR (MTBLY)

[downthehatch]

We now see all the filings made on April 29, which essentially are a request by Plaintiff's counsel for the Court to reconsider its earlier ruling rejecting the settlement, or allowing Plaintiff to re-argue the case, and have the judge enter a new ruling. Plaintiffs focus on the fact that a derivative action must benefit current shareholders. The proof of this is the fact that if the case were to continue to trial, and a judgment be rendered for Plaintiffs, the award would be to the corporation- because a derivative action is one filed "on behalf of" the corporation.

The brief also makes clear that the determination of an appropriate fee is separate from the question of whether the settlement should be approved, and is NOT a reason to reject the settlement.

It is a well-written brief and makes good sense. Offers Judge Borrock a chance to undo his earlier ruling, which would likely not have held up on appeal. (Because the law on derivative actions is quite clear: current shareholders benefit from a successful derivative action, not former shareholders.)

Favorable ruling on this filing would be quite positive for the share price, obviously.