Why Renren Shares Are Falling

Renren Inc RENN is trading lower Thursday after the commercial division of the New York State Supreme Court declined to approve a settlement in derivative litigation for the company.

The court rejected the procedure under the stipulation for setting the record date for determining the holders of Renren's shares and American depositary shares entitled to distributions from the settlement fund.

The court also stated that the proposed fee award to the plaintiffs' counsel was too high. The court intends to issue a written order sometime soon. 

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Renren operates as a used automobile business. It sells used automobiles and related products; arranges financing options for customers through financial services partners; and provides credit financing to used automobile dealerships.

RENN Price Action: Renren has traded as high as $28.38 and as low as $4.55 over a 52-week period. 

The stock was down 55.20% at $11.67 at time of publication.