NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of PPDAI Group Inc. (NYSE: PPDF) resulting from allegations that PPDAI may have issued materially misleading business information to the investing public.
PPDAI conducted an initial public offering (“IPO”) in November 2017, issuing approximately 17 million American Depositary Shares (“ADSs”) to the investing public at $13 per ADS. Shortly after the IPO, on November 21, 2017, Chinese regulators issued an administrative order banning the issuance of new online peer-to-peer licenses, citing improper and illegal practices by companies such as PPDAI, including extremely high interest rates, illegal collections, and lack of risk management. On this news, PPDAI’s ADS price fell $2.62 per share, or approximately 24.3%, to close at $8.18 per ADS on November 22, 2017.
Further, on December 1, 2017, Chinese regulators issued another order, outlining specific guidelines meant to correct improper practices among online lenders such as PPDAI, including, among other things, a 36% cap on annualized interest or fees charged on lending products, enhanced risk management requirements, and stricter restrictions on aggressive collection practices. On this news, PPDAI’s ADS price fell $2.44, or over 25%, over the next few trading days to close at $7.16 per ADS on December 7, 2017. Currently, PPDAI’s ADSs are trading at approximately 58% below the IPO price.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by PPDAI investors. If you purchased shares of PPDAI please visit the firm’s website at https://www.rosenlegal.com/chinese/cases-911.html to join the class action. You may also contact Phillip Kim or Zachary Halper of Rosen Law Firm toll free at 866-767-3653 or via email at pkim@rosenlegal.com or zhalper@rosenlegal.com.
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013.
