Lake Forest, IL, July 26, 2025 –(PR.com)– On June 4, 2025, Hughes River FM, LLC, an American investor in the Chinese business Ximalaya, Inc., brought a lawsuit in the United States District Court for the Northern District of Illinois, Eastern Division, Case No. 1:25-cv-06217, seeking to void an acquisition by Tencent Music Entertainment Group, Inc. and to recover $75,000,000 in damages. The lawsuit alleges that the Board of Directors of Ximalaya and its Founder and CEO, Yu Jianjun, have agreed to be acquired by Tencent, whereby they will receive USD 10 for their shares in Ximalaya. Yet, allegedly, its shareholders will receive only 50 percent as much, or USD 5 per share, and this preferential treatment, according to the lawsuit, constitutes self-dealing and a breach of fiduciary duty.
According to the allegations in the complaint, Tencent is also accused of aiding and abetting in the breaches of fiduciary duties on the part of Ximalaya’s directors, who are exploiting their positions for personal gain at the expense of their shareholders, including Hughes River.
The complaint alleges: Ximalaya is a leading online audio platform in China. Founded in 2012, it offers a diverse range of audio content. As of 2025, Ximalaya has reached over 600 million users.
Hughes River is represented by Daniel J. Voelker, Esq., of Voelker Litigation Group, 33 N. Dearborn Street, Suite 400, Chicago, Illinois 60602, 312.505.4841, daniel.voelker59@gmail.com.
