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9F Inc. Class Action Lawsuit

Company Name
9F Inc.
Stock Symbol
JFU
Class Period
August 14, 2019 to September 29, 2020, including purchasers pursuant to the August 14, 2019 initial public offering
Court
District of New Jersey

Case Summary

The 9F Inc. class action lawsuit charges 9F, certain of its executives and directors, and the underwriters of 9F’s August 14, 2019 initial public offering (the “IPO”) with violations of the Securities Act of 1933 and/or Securities Exchange Act of 1934.  The 9F class action lawsuit seeks to represent purchasers or acquirers of 9F securities: (1) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with 9F’s IPO; and/or (2) between August 14, 2019 and September 29, 2020, both dates inclusive (the “Class Period”).  The 9F class action lawsuit was filed in the District of New Jersey and is captioned Holland v. 9F Inc., No. 20-cv-00948.

9F claims to be a leading digital financial account platform that integrates and personalizes financial services in China.  9F provides a comprehensive range of financial products and services across loan products, online wealth management products, and payment facilitation, all integrated under a single digital financial account.  In August 2019, defendants held the IPO, selling approximately 8.9 million American Depositary Shares (“ADSs”) to the investing public at $9.50 per ADS, pursuant to the Registration Statement.

The 9F class action lawsuit alleges that the IPO’s Registration Statement was negligently prepared and, as a result, contained materially false and misleading statements of fact and failed to disclose facts required to be disclosed therein regarding 9F’s business, operations, and prospects.

Soon after the IPO, on December 5, 2019, 9F reported its third quarter 2019 financial results – the same quarter during which the IPO had been conducted.  9F’s net accounts receivables had ballooned in size from RMB180 million as of December 31, 2018 to RMB1.9 billion, a more than tenfold increase, as of September 30, 2019.

Then, on June 12, 2020, 9F stated that it had been involved in an ongoing dispute with its critical insurance partner, Property and Casualty Company Limited Guangdong Branch (“PICC”), despite the fact that the dispute had not been disclosed in the Registration Statement.

Thereafter, on June 15, 2020, 9F filed with the U.S. Securities and Exchange Commission on Form NT 20-F a notice stating that it would be unable to file its annual report timely.  The notice effectively confirmed that 9F’s dispute with PICC predated the IPO, stating that it was expected to engender “significant changes in results of operations between 2018 and 2019.”

Finally, on June 17, 2020, 9F issued a press release which provided further confirmation that 9F’s dispute with PICC predated the IPO and had caused material damage to 9F’s business, operations, and financial results.

Subsequent to the IPO, the price of 9F ADSs has plummeted in value.  As of the filing of the 9F class action lawsuit, 9F ADSs were trading substantially below the IPO price.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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