SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit was filed on behalf of purchasers of LexinFintech Holdings Ltd. (NASDAQ: LX) securities between December 21, 2017 and August 24, 2020 (the “Class Period”) and purchasers or acquirers of LexinFintech American Depositary Shares (“ADSs”) pursuant and/or traceable to LexinFintech’s December 21, 2017 initial public offering (the “IPO”). The LexinFintech class action lawsuit charges LexinFintech and certain of its officers and directors with violations of the Securities Act of 1933 and/or the Securities Exchange Act of 1934. The first-filed case, captioned Solis v. LexinFintech Holdings Ltd., No. 20-cv-01562, is pending in the District of Oregon and is assigned to Judge Michael H. Simon. A second case was filed in the District of New Jersey, captioned Vela v. LexinFintech Holdings Ltd., No. 20-cv-12606, and is assigned to Judge Madeline Cox Arleo.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased LexinFintech securities during the Class Period and/or LexinFintech ADSs pursuant and/or traceable to the IPO to seek appointment as lead plaintiff in the LexinFintech class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the LexinFintech class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the LexinFintech class action lawsuit. An investor’s ability to share in any potential future recovery of the LexinFintech class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the LexinFintech class action lawsuit or have questions concerning your rights regarding the LexinFintech class action lawsuit, please provide your information here or contact, Brian Cochran of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the LexinFintech class action lawsuit must be filed with the court no later than November 9, 2020.
LexinFintech, through its subsidiaries, operates as an online consumer finance platform for young professionals in the People’s Republic of China. On December 21, 2017, pursuant to its IPO, LexinFintech’s ADSs began trading on the NASDAQ Global Market under the symbol “LX.”
The LexinFintech class action lawsuit alleges that, during the Class Period and in the Registration Statement issued in connection with the IPO, defendants made false and/or misleading statements and/or failed to disclose that: (i) LexinFintech had reported artificially low delinquency rates; (ii) LexinFintech’s business model exposed shareholders to enormous losses; (iii) LexinFintech had exaggerated its user base; (iv) LexinFintech was facilitating direct peer-to-peer lending in contravention of Chinese law; (v) LexinFintech had engaged in undisclosed related-party transactions; (vi) LexinFintech lacked adequate internal controls; and (vii) as a result, defendants’ statements about LexinFintech’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On August 25, 2020, Grizzly Research published a report describing, among other things, how LexinFintech: (i) was reporting artificially low delinquency rates by giving borrowers in default new funds to make payments; (ii) had a business model that exposed shareholders to enormous losses; (iii) was still conducting direct peer-to-peer lending despite claiming otherwise, (iv) lacked internal controls; and (v) had conducted undisclosed related-party transactions. On this news, the price of LexinFintech shares fell more than 5.5%, damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.