UPCOMING LEAD PLAINTIFF DEADLINE IS FEBRUARY 7, 2020
NEW YORK, Jan. 8, 2020 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal class action securities lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of investors who purchased the American Depositary Receipts ("ADR's") of X Financial (NYSE: XYF) pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with X Financial's September 2018 initial public stock offering (the "IPO").
Investors who purchased the ADR's of X Financial. are urged to contact the firm immediately at firstname.lastname@example.org or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the ADR's of X Financial, you may, no later than February 7, 2020, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the ADR's of X Financial.
According to the filed complaint, the Registration Statement featured false and/or misleading statements and/or failed to disclose that:
- the Company's total loan facilitation amount was not growing, but rather was contracting;
- the number of investors actively using X Financial's platform was shrinking;
- demand from small- and medium-sized enterprises for the Company's Xiaoying Preferred Loans ("preferred loans") was plummeting;
- the Company's preferred loans had performed so poorly that it had begun drastically scaling back its preferred loans in the first quarter of 2018, several months before the IPO, and was in the process of phasing out such loans completely;
- demand for the Company's Xiaoying Card Loans was also plummeting;
- the revenue and loan facilitation growth provided in the Registration Statement leading up to the IPO was achieved by relaxed credit and due diligence standards, under which the Company had underwritten tens of millions of dollars' worth of poor quality loans that suffered from a disproportionately high risk of default as compared to the Company's earlier loan vintages;
- the Company was suffering from accelerated delinquency rates from poor quality loans that it had underwritten in the first, second, and third quarters of 2018, which had caused the Company's delinquency rate to sharply rise;
- the Company's product mix had significantly deteriorated;
- the Company's net revenue was on track to decline by 22% during the third quarter of 2018; and
- as a result, defendants' statements about X Financial's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at email@example.com, or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: firstname.lastname@example.org, email@example.com or firstname.lastname@example.org
Tel: (800) 575-0735 or (212) 545-4774
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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP