NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, has filed a class action lawsuit on behalf of all those who purchased Qudian Inc. (“Qudian” or the “Company”) (NYSE:QD) American Depository Shares (“ADSs”) pursuant to the Company’s initial public offering on or about October 18, 2017 (the “IPO”), seeking to recover damages for alleged violations of Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”). The case, Ramnath v. Qudian Inc., et al., No. 1:17-cv-9741, was filed on December 12, 2017 in the United States District Court for the Southern District of New York. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today.
If you invested in Qudian ADSs pursuant to the Company’s IPO and would like to discuss your legal rights, click here: http://www.faruqilaw.com/QD. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
Qudian is a Chinese provider of online micro-lending credit products. The complaint charges Qudian, certain of its officers and directors, and the underwriters (collectively, the “Defendants”) of the IPO with violations of the Securities Act.
On or about September 18, 2017, Qudian filed with the Securities and Exchange Commission (“SEC”) its Registration Statement on Form F-1, which would later be utilized in the IPO following multiple amendments on Form F-1/A—the last of which was filed on October 13, 2017—and being declared effective by the SEC on October 17, 2017. On October 17, 2017, the Defendants priced the IPO at $24.00 per ADS. Then, on or about October 18, 2017, Qudian filed the final prospectus for the IPO, which forms part of the Registration Statement. That same day, Qudian ADSs began trading on the NYSE under the ticker symbol “QD.”
The lawsuit focuses on whether the Defendants violated federal securities laws by making false and/or misleading statements in the IPO’s Registration Statement by failing to disclose that: (i) Qudian’s loan collection practices were materially deficient and/or nonexistent as the Company treated bad loans as welfare, and (ii) Qudian’s data systems and procedures were materially inadequate to safeguard sensitive borrower data against breach, and that breaches had occurred.
At the time of the filing of the lawsuit, Qudian’s ADSs were trading at $13.19, which is approximately 45% lower than the $24.00 IPO price.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Defendants’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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