BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased PPDAI Group Inc. (“PPDAI” or the “Company”) (NYSE: PPDF) securities pursuant and/or traceable to PPDAI’s November 2017 Initial Public Offering (“IPO”). PPDAI investors have until January 25, 2019 to file a lead plaintiff motion.
Investors suffering losses on their PPDAI investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
The Company conducted its initial public offering of 17 million American depositary shares in November 2017 at $13 per share.
Shortly after the IPO, however, Chinese regulators banned the issuance of new online peer-to-peer licenses, citing illegal practices by companies such as PPDAI. On this news, PPDAI’s share price fell $2.62 per share, or more than 24%, to close at $8.18 per share on November 22, 2017, thereby injuring investors.
Then, on December 1, 2017, Chinese regulators issued an order outlining specific guidelines meant to correct improper practices among online lenders such as PPDAI. On this news, PPDAI’s share price fell $2.44, or more than 25%, over several trading days, to close at $7.16 per share on December 7, 2017, thereby further injuring investors.
The Complaint filed in this class action alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) PPDAI Group was engaged in predatory lending practices that saddled subprime borrowers and those with poor or limited credit histories with high interest rate debt they could not repay; (2) many of PPDAI Group’s customers were using PPDAI Group-provided loans to repay existing loans they otherwise could not afford to repay, thereby inflating PPDAI Group’s revenues and active borrower numbers and increasing the likelihood of defaults; (3) PPDAI Group was experiencing increasing delinquency rates, negatively affecting PPDAI Group’s reserves; (4) PPDAI Group’s purported “rapid growth” in the number and amount of loans had materially dropped off; (5) PPDAI Group was providing online loans to college students despite a government ban on the practice; (6) PPDAI Group was engaged in overly aggressive and improper collection practices; and (7) as a result of its improper lending, underwriting, and collection practices, PPDAI Group was subject to heightened risk of adverse actions by Chinese regulators.
If you purchased shares of PPDAI, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.