Chinese hotel group Huazhu Group Ltd. said March 6 that the class-action suit related to a reported data breach at the company was voluntarily dismissed by the plaintiffs on Feb. 27.
In August 2018, police in China launched a probe into a possible data leak at Huazhu, which operates Ibis and Novotel hotels in the country. The data breach allegedly compromised about 500 million pieces of customer information, including email addresses and account passwords.
The class-action complaint was filed in the U.S. District Court of Central District of California in October 2018, with the plaintiffs alleging that the potential breach violated U.S. securities laws. They said Huazhu made misleading or false statements to investors and failed to disclose any serious effects of the data breach on the company's business, operations and prospects.
In its statement, Huazhu did not disclose further details about the dismissal of the case.