NEW ORLEANS--(BUSINESS WIRE)--Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until February 7, 2020 to file lead plaintiff applications in a securities class action lawsuit against X Financial (NYSE: XYF), if they purchased the Company’s American Depositary Shares (“ADSs”) issued in connection with its September 2018 initial public stock offering (the “IPO”). This action is pending in the United States District Court for the Eastern District of New York.
What You May Do
If you purchased ADSs of X Financial and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nyse-xyf/ to learn more. If you wish to serve as a lead plaintiff in this class action, you must petition the Court by February 7, 2020.
About the Lawsuit
X Financial and certain of its executives are charged with failing to disclose material information in its IPO Registration Statement and Prospectus, violating federal securities laws.
The alleged false and misleading statements and omissions include, but are not limited to, that: (i) the Company’s total loan facilitation amount was contracting, not growing; (ii) the number of investors actively using its lending platform was shrinking; (iii) demand for the Company’s preferred loans by small- and medium-sized enterprises was plummeting; (iv) pre-IPO, the Company had begun drastically scaling back its preferred loans due to poor performance and was in the process of phasing them out completely; (v) demand for the Company’s card loans was plummeting; (vi) the revenue and loan facilitation growth provided in the Registration Statement leading up to the IPO was achieved by relaxed lending standards, through which the Company had underwritten tens of millions of dollars’ worth of poor-quality loans that suffered from a disproportionately high risk of default as compared to the Company’s earlier loan vintages; (vii) poor quality loans underwritten by the Company in the first, second, and third quarters of 2018 were causing accelerated delinquency rates; (viii) the Company’s product mix had significantly deteriorated; (ix) the Company’s net revenue was on track to decline by 22% during the third quarter of 2018; and (x) as a result of the foregoing, X Financial’s statements were materially false and misleading at all relevant times.
The case is Chen v. X Financial, et al, 19-cv-06908.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
