LexinFintech Holdings Ltd. Class Action Lawsuit
- Company Name
- LexinFintech Holdings Ltd.
- Stock Symbol
- Class Period
- December 21, 2017 to August 24, 2020
- District of Oregon
The LexinFintech Holdings Ltd. class action lawsuit charges LexinFintech, certain of its officers and directors, and the underwriters of Lexinfintech’s December 21, 2017 initial public offering (the “IPO”) with violations of the Securities Act of 1933 and/or the Securities Exchange Act of 1934. The Lexinfintech class action lawsuit seeks to represent purchasers or acquirers of LexinFintech securities between December 21, 2017 and August 24, 2020 (the “Class Period”) and purchasers or acquirers of LexinFintech American Depositary Shares (“ADSs”) pursuant and/or traceable to LexinFintech’s IPO. The first-filed case, captioned Solis v. LexinFintech Holdings Ltd., No. 20-cv-01562, was commenced on September 9, 2019 and is pending in the District of Oregon. A second case was filed in the District of New Jersey and is captioned Vela v. LexinFintech Holdings Ltd., No. 20-cv-12606.
LexinFintech, through its subsidiaries, operates as an online consumer finance platform for young professionals in the People’s Republic of China. On December 21, 2017, pursuant to its IPO, LexinFintech’s ADSs began trading on the NASDAQ Global Market under the symbol “LX.”
The LexinFintech class action lawsuit alleges that during the Class Period, LexinFintech’s IPO Offering Documents and defendants made false and/or misleading statements and/or failed to disclose that: (i) LexinFintech reported artificially low delinquency rates; (ii) LexinFintech’s business model exposed shareholders to enormous losses; (iii) LexinFintech exaggerated its user base; (iv) LexinFintech was facilitating direct peer-to-peer lending contrary to Chinese law; (v) LexinFintech engaged in undisclosed related-party transactions; (vi) LexinFintech lacked adequate internal controls; and (vii) as a result, defendants’ statements about LexinFintech’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On August 25, 2020, Grizzly Research published a report describing, among other things, how LexinFintech: (i) reports artificially low delinquency rates by giving borrowers in default new funds to make payments; (ii) has a business model that exposes shareholders to enormous losses; (iii) was still conducting direct peer-to-peer lending despite claiming otherwise, (iv) lacked internal controls; and (v) conducted undisclosed related-party transactions. On this news, shares of LexinFintech stock fell more than 5.5%, damaging investors.
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 seven 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.