SAN DIEGO & BEIJING--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Qudian Inc. (NYSE: QD) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company's October 18, 2017 initial public offering ("IPO"). Qudian provides online small consumer credit in China.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/qudian-inc
Qudian Accused of Engaging in Predatory Lending Practices
On October 18, 2017, Qudian held its IPO, selling 37.5 million American Depositary Shares and raising net proceeds of approximately $900 million. The complaint alleges that Qudian's registration statement represented that the company had experienced rapid growth in revenues, net income, and active users in the years leading up to the IPO. Qudian further assured investors that it employed robust credit assessment and monitoring tools to ensure that it was only making loans to borrowers who demonstrated the ability and willingness to repay the loans. However, Qudian failed to disclose that its financial position had been fueled by improper lending, underwriting, and collection practices. In particular, Qudian was engaging in predatory lending practices that saddled subprime borrowers with high interest rate debt that they could not repay, failed to implement necessary safeguards to protect customer data, and subjected the company to undisclosed risks of penalties and financial and reputational harm. On December 12, 2017, Qudian's ADR price fell 45% below its $24.00 IPO price to close at $13.19.
Qudian Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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