Today, investors in a Chinese social media company listed in the United States Renren (NYSE:RENN) register more impressive gains. This is a Chinese title that has gone under the radar, for the most part, this year. Despite various concerns about China’s regulatory crackdown, RENN stock continued to outperform.

Investors were able to buy RENN shares around $ 5.50 per share to start this year. Since then, this Chinese social media game has surpassed $ 24 per share today. This represents returns well over 300% for investors who have remained loyal to this company through thick and thin.

Indeed, this is a company that has recently been involved in some rather nasty legal proceedings. Company shareholders sued Renren, alleging that Renren insiders ceded a valuable stake in SoFi Technologies (NASDAQ:SOFI) for less than market value. This spin-off was one that the courts agreed was aimed at stripping the company of some of its best assets. As a result, investors in RENN shares are expected to be paid around $ 300 million to be redeemed.

Let’s see why Renren takes off with this news.

RENN Stock soars on $ 300 million settlement deal

Renren CEO Joe Chen orchestrated an incredible derivative deal. The company approved a split of Renren’s stake in SoFi, allowing only accredited investors to keep shares in the split company. As a result, around 20% of investors in RENN shares who were not accredited were not allowed to participate in the spin-off. While receiving a cash payment, investors lost their exposure to what was truly one of Renren’s best assets at the time.

It should be noted that Renren is a declining social media platform in China. The company has taken steps to stay alive, including changing market niches, targeting the used car resale market. What was once billed as “China’s Facebook” has become a low-profile social media player in China.

Renren investors appear to view this settlement agreement positively for two reasons. First, it removes the cloud hanging over this business. Any removal of uncertainty is a good thing.

Second, many investors expected the payout to potentially be much larger. This regulation ensures that Renren will continue and can focus on growing its business.

That said, it’s a company that still looks like it has a lot of hair on it. As a result, investors looking to purchase this soft drink may want to be careful with this stock at this time.

As of the publication date, Chris MacDonald does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.