SAN DIEGO & BEIJING--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Wins Finance Holdings Inc. (NASDAQ: WINS) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between October 31, 2018 and July 6, 2020. Wins provides financing solutions for small and medium enterprises in the People's Republic of China.
If you suffered a loss as a result of Wins' misconduct, click here.
Wins Finance Holdings Inc. (WINS) Accused of Misleading Shareholders
According to the complaint, in 2014, Wins entered into a RMB 580 million credit arrangement with Guohong Asset Management Co., Ltd. ("Guohong") in which Guohong would be required to repay in October 2019. However, around the time the loan was to be repaid in October 2019, Wins filed a notification of inability to timely file its Form 20-F. Consequently, in November 2019, Wins disclosed that it had received a notification letter from the NASDAQ Listing Qualifications and revealed that Wins was unable to timely file its Form 20-F due to its inability to secure repayment of the RMB 580 million loan. However, Wins assured investors "the failure to collect this amount will not impact the Company’s ongoing operations." Despite assurances, on May 26, 2020, Wins revealed it had received a delisting determination letter from NASDAQ. Finally, on June 6, 2020, Wins disclosed its independent auditor had resigned, stating that the independent auditor "expressed an adverse opinion on the Company’s internal control over financial reporting as of June 30, 2017 and 2018 because of material weaknesses." On this news, Wins' stock price fell $2.06 per share, or 6%, to close at $31.70 per share. The stock continues to decline.
If you purchased Wins Finance Holdings Inc. (WINS) securities between October 31, 2018 and July 6, 2020, you have until September 23, 2020, to ask the court to be appointed lead plaintiff for the class.
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