Jianpu Technology Inc. Class Action Lawsuit
- Company Name
- Jianpu Technology Inc.
- Stock Symbol
- Class Period
- May 29, 2018 to February 16, 2021
- Southern District of New York
The Jianpu Technology Inc. class action lawsuit charges Jianpu and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Jianpu American Depositary Shares (“ADSs”) between May 29, 2018 and February 16, 2021 (the “Class Period”). The Jianpu class action lawsuit was commenced on February 17, 2021 in the Southern District of New York and is captioned Guttentag v. Jianpu Technology Inc., No. 21-cv-01419.
Jianpu purports to be the leading independent open platform for discovery and recommendation of financial products in China. Jianpu touts its proprietary technology which provides search results and recommendations tailored to each user’s financial needs and credit profile.
The Jianpu class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) certain of Jianpu’s transactions carried out by the Credit Card Recommendation Business Unit involved undisclosed relationships or lacked business substance; (2) consequently, Jianpu’s revenue and costs and expenses for fiscal 2018 and 2019 were overstated; (3) there were material weaknesses in Jianpu’s internal control over financial reporting; (4) thus, Jianpu’s fiscal 2018 Form 20-F was reasonably likely to be restated; and (5) as a result of the foregoing, defendants’ positive statements about Jianpu’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On February 16, 2021, Jianpu announced the results of its review into “transactions carried out by the Credit Card Recommendation Business Unit” with third-party business entities. Jianpu concluded that previously reported revenue and associated expenses had been inflated due to “certain transactions [that] involved third-party agents (including both upstream agents and downstream suppliers) with undisclosed relationships and some transactions [that] lacked business substance.” Jianpu stated that it “anticipates the total amount of overstated revenue for the fiscal years 2018 and 2019 to be approximately, RMB 90 million and RMB 164 million, respectively, representing approximately 4.5% and 10.1% of the total revenue previously reported.” On this news, Jianpu’s share price fell more than 13%, damaging investors.
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