SAN DIEGO & SHENZHEN, China--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of X Financial (NYSE: XYF) has sued the Company for alleged violations of the Securities Act of 1933 pursuant to its September 2018 initial public offering ("IPO"). X Financial provides personal finance services in the People's Republic of China.
If you suffered a loss as a result of X Financial's misconduct, click here.
X Financial (XYF) Accused of Misleading Investors in IPO
According to the complaint, X Financial completed its IPO on September 19, 2018, offering 11.7 million American Depositary Shares ("ADSs") at $9.50 per ADS and raising more than $111 million in gross proceeds. In its Registration Statement, X Financial touted that the increase in borrowers for its Xiaoying Preferred Loan "will drive continued growth in [its] borrower base" and that the Company had "experienced significant growth in the amount of loans facilitated." Despite its positive forward-looking statements, in November 2018, the Company's financial results for third quarter 2018 revealed a 40% sequential increase and 270% year-over-year increase in the delinquency rate for X Financial loans and a 35% year over year and 21% quarter over quarter reduction in loans facilitated. Then on April 25, 2019, X Financial disclosed in its annual report for 2018 on Form 20-F that there had been a dramatic increase in delinquency rates leading up to and during the IPO and that these negative trends were accelerating. By November 22, 2019, X Financial's ADSs closed at $1.74 per ADS, representing an 80% plummet from its IPO price.
X Financial (XYF) Shareholders Have Legal Options
Contact us to learn more:
Leo Kandinov
(800) 350-6003
LKandinov@robbinsllp.com
Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar outcome.
