NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national shareholder and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed in the Eastern District of New York against PPDAI Group Inc. (“PPDAI” or the “Company”) (NYSE:PPDF) and other defendants, related to alleged violations of federal securities laws. If you purchased PPDAI American Depositary Shares (“ADSs”) pursuant or traceable to the Company’s November 2017 initial public offering (“IPO”), you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for more information.
PPDAI is an online consumer finance market based in China that connects borrowers and investors and generates revenue by charging borrowers and lenders fees for loan facilitation and other services.
According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose that: (1) PPDAI 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’s customers were using PPDAI-provided loans to repay existing loans they otherwise could not afford to repay, thereby inflating PPDAI’s revenues and active borrower numbers and increasing the likelihood of defaults; (3) PPDAI was experiencing increasing delinquency rates, negatively affecting PPDAI’s reserves; (4) PPDAI’s purported “rapid growth” in the number and amount of loans had materially dropped off; (5) PPDAI was providing online loans to college students despite a government ban on the practice; (6) PPDAI was engaged in overly aggressive and improper collection practices; and (7) as a result of its improper lending, underwriting, and collection practices, PPDAI was subject to heightened risk of adverse actions by Chinese regulators.
What You Can Do
If you purchased PPDAI ADSs pursuant and/or traceable to the Company’s IPO, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at jpettigrew@scott-scott.com. The lead plaintiff deadline is January 25, 2019.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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