NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against X Financial (“X Financial” or the “Company”) (NYSE: XYF), certain of its officers and directors, and the underwriters of the Company’s September 2018 initial public offering (“IPO”), alleging violations of federal securities laws. If you purchased X Financial American Depository Shares (“ADSs”) pursuant and/or traceable to the Company’s IPO on or about September 19, 2018, you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman at (888) 398-9312 for more information.
X Financial is a financial technology company based in Shenzhen, China, that operates a peer-to-peer platform that matches borrowers with lenders.
The lawsuit alleges that the Company (and other named defendants) misled investors by failing to disclose that, among other things: (1) the Company’s total loan facilitation amount was not growing, but rather contracting; (2) the number of investors using the Company’s platform was shrinking; (3) demand for the Company’s preferred loans and card loans were plummeting; (4) the Company was suffering from accelerated delinquency rates from poor quality loans that it had underwritten; (5) the Company’s product mix had significantly deteriorated; and (6) that the Company’s net revenue was on track to decline by 22% during the third quarter of 2018.
Immediately prior to the filing of the lawsuit, X Financials’ securities closed at $1.74 per ADS, representing an 80% decline from the price at which X Financials’ ADSs were sold in the IPO.
What You Can Do
If you purchased X Financial stock in or traceable to the Company’s IPO, or if you have questions about this notice or your legal rights, please contact attorney Jonathan Zimmerman at (888) 398-9312, or at firstname.lastname@example.org.
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, Amsterdam, Connecticut, California, and Ohio.