Lawsuit for Investors in X Financial (XYF) announced by Shareholders Foundation
SAN DIEGO, CA / ACCESSWIRE / December 10, 2019 / The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain investors in X Financial (XYF) shares.
Investors, who purchased shares of X Financial (XYF), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that representations in the registration statement that was filed in connection with the company's initial public offering ("IPO") contained untrue statements of material fact because X Financial failed to disclose that at the time of the IPO that the Company's total loan facilitation amount was not growing, and was in fact contracting, that the number of investor's actively using X Financial's platform was also contracting, that the demand from small and medium enterprises ("SME") was declining, that X Financial's Xiaoying Preferred Loans were performing so poorly that the Company was scaling back this segment, that X Financial's Xiaoying Card Loans were also declining, that revenue and loan facilitation growth found in the Registration Statement was due to relaxed credit and due diligence standards to which X Financial had underwritten tens of millions of dollars' worth of poor quality loans that suffered from a disproportionally high risk of default compared to the Company's earlier loans, that poor quality loans underwritten in the first, second, and third quarters of 2018 had increased 12 delinquency rate, that Xiaoying Card Loans, which had higher delinquency rates and lower ticket sizes, were a growing proportion of all loans, that X Financial's net revenue was on track to decline during its third quarter 2018, and that as a result, X Financial's Registration Statement was materially false and misleading.
Those who purchased X Financial (XYF) shares should contact the Shareholders Foundation, Inc.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.
SOURCE: Shareholders Foundation, Inc.
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https://www.accesswire.com/569722/Lawsuit-for-Investors-in-X-Financial-XYF-announced-by-Shareholders-Foundation
