BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming November 30, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Pintec Technology Holdings Limited ("Pintec" or the "Company") (NASDAQ: PT) securities pursuant and/or traceable to Pintec’s October 2018 initial public offering (“IPO” or the “Offering”).
Investors suffering losses on their Pintec investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
In October 2018, Pintec completed its IPO in which it sold more than 3.7 million American Depositary Shares (“ADSs” or “shares”) at $11.88 per share.
On July 30, 2019, after the market closed, Pintec filed its fiscal 2018 annual report, in which it restated previously disclosed financial results. Among other things, Pintec reported net income of $315,000 for fiscal 2018, compared to its prior disclosure of $1.068 million net income. The Company also disclosed that there were material weaknesses in its internal control over financial reporting related to cash advances outside the normal course of business to Jimu Group, a related party, and to a non-routine loan financing transaction with a third-party entity, Plutux Labs.
On this news, Pintec’s share price fell $0.53, or more than 13%, over the next several trading sessions, to close at $3.40 per share on August 5, 2019, thereby injuring investors.
On June 15, 2020, after the market closed, the Company disclosed that it could not timely file its fiscal 2019 annual report and that it anticipated reporting a significant change in results of operations. Specifically, Pintec disclosed that it “erroneously recorded revenue earned from certain technical service fee on a net basis” for fiscal 2017 and 2018. Moreover, the Company “announced a net loss of RMB906.5 million in the full year of 2019 due to RMB890.7 million of provision for credit loss in amounts due from a related party, Jimu Group, and RMB200 million of impairment in prepayment for long-term investment.”
By the initiation of this action, Pintec shares were trading as low as $0.92 per share, a nearly 92% decline from the $11.88 per share IPO price.
The complaint alleges that the Registration Statement was false and misleading and omitted to state material facts. Specifically, Defendants failed to disclose to investors: (1) that Pintec erroneously recorded revenue earned from certain technical service fee on a net basis, rather than a gross basis; (2) that there were material weaknesses in the Company’s internal control over financial reporting related to cash advances outside the normal course of business to Jimu Group, a related party, and to a non-routine loan financing transaction with a third-party entity, Plutux Labs; (3) that, as a result of the foregoing, Pintec’s financial results for fiscal 2017 and 2018 had been misstated; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Pintec’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased Pintec securities during the Class Period, you may move the Court no later than November 30, 2020 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.