NEW YORK, Jan. 04, 2020 (GLOBE NEWSWIRE) -- Zhang Investor Law announces a class action lawsuit on behalf of shareholders who bought shares of X Financial (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” or the “Offering”), inclusive (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than February 7, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
To join the class action, http://zhanginvestorlaw.com/join-action-form/?slug=x-financial&id=2135 or call Sophie Zhang, Esq. toll-free at 800-991-3756 or email email@example.com for information on the class action.
According to the lawsuit, throughout the Class Period, defendants and its senior executives presented false and misleading financial statements or omitted to 1) the Company’s total loan facilitation amount was not growing, but rather was contracting; (2) the number of investors actively using X Financial’s platform was shrinking; (3) demand from small- and medium-sized enterprises for the Company’s Xiaoying Preferred Loans (“preferred loans”) was plummeting; (4) 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; (5) demand for the Company’s Xiaoying Card Loans was also plummeting; (6) 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; (7) 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; (8) the Company’s product mix had significantly deteriorated; (9) the Company’s net revenue was on track to decline by 22% during the third quarter of 2018; and (10) 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. When the true details entered the market, the lawsuit claims that investors suffered damages.
A class has not been certified. You may retain counsel of your choice. You may take no action at this time and be an absent class member. Your ability to obtain a recovery is not dependent upon being a lead plaintiff.
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