LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against X Financial (“X Financial” or “the Company”) (NYSE: XYF) for violations of the federal securities laws
Investors who purchased the Company's securities pursuant and/or traceable to the Company’s Registration Statement issued in connection with its September 2018 initial public offering (the “IPO” or “Offering”), are encouraged to contact the firm before February 7, 2020.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA 90067, at 424-303-1964, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at email@example.com.
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. X Financial’s total loan facilitation was shrinking instead of growing. At the same time, the number of investors using the Company’s platform was also contracting. The Company’s preferred loans performed so poorly that it took the drastic step of scaling them back significantly months before its IPO, intending to phase them out completely. The revenue and loan facilitation growth shown in the Company’s registration statement was achieved with relaxed lending standards leading to many millions of dollars’ worth of high risk loans as compared to X Financial’s older loans. This led to an accelerated delinquency rate for the loans underwritten in the first three quarters of 2018, and a deteriorating product mix after the IPO. Based on these facts, the Company’s public statements were false and materially misleading. When the market learned the truth about X Financial, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.