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Qudian Inc. Class Action Lawsuit

28 days left to seek lead plaintiff status

Case Summary

Company Name
Qudian Inc.
Stock Symbol
QD
Class Period
December 13, 2018 to January 15, 2020
Motion Deadline
March 22, 2020
Court
Southern District of New York

On January 22, 2020, the Qudian Inc. class action lawsuit was filed charging Qudian and certain of its officers with violations of the Securities Exchange Act of 1934.  The Qudian class action lawsuit was commenced in the Southern District of New York on behalf of purchasers of Qudian securities between December 13, 2018 and January 15, 2020 (the “Class Period”) and is captioned Bellingham v. Qudian Inc., et al., No. 20-cv-00577.

Qudian was founded in 2014 and is headquartered in the People’s Republic of China.  Qudian provides online small consumer credit products using big data-enabled technologies, including artificial intelligence and machine learning.  Qudian’s products include cash credit products, merchandise credit products to finance borrowers’ direct purchase of merchandise offered on its marketplace on an installment basis, and budget auto financing products.  In addition, Qudian operates a platform for loan recommendations and referrals.

The Qudian class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose that: (i) regulatory developments in China threatened to negatively impact Qudian’s full year fiscal 2019 financial results; (ii) Qudian’s business was unprepared to mitigate the risks associated with these regulatory changes; (iii) as a result, Qudian’s loan portfolio was plagued by growing delinquency rates; and (iv) all of the foregoing made Qudian’s repeated assertions concerning its full year fiscal 2019 financial guidance unrealistic.  As a result of this information being withheld from the market, Qudian American Depositary Shares (“ADSs”) traded at artificially inflated prices during the Class Period, reaching a high of more than $9 per ADS.

Then, on January 16, 2020, Qudian issued a press release announcing “that Qudian [was] withdraw[ing] its fiscal 2019 guidance and w[ould] not issue guidance in the near term due to uncertainty related to the recent regulatory and operating environment.”  Qudian stated that “China’s online consumer finance industry was affected by several regulatory developments in the fourth quarter of 2019, including further restrictions on loan collection practices, more stringent user data privacy rules and the requirements for P2P [Peer to Peer] lending platforms to orderly exit their P2P businesses,” which had “reduced the availability of funding for consumer credit and driven up delinquency rates across the industry, including Qudian’s loan portfolio.”  On this news, the price of Qudian ADSs fell $0.84 per share, or more than 19%, to close at $3.55 per ADS on January 16, 2020.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Qudian securities during the Class Period to seek appointment as lead plaintiff in the Qudian class action lawsuit.  A lead plaintiff will act on behalf of all other class members in directing the Qudian class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Qudian class action lawsuit.  An investor’s ability to share in any potential future recovery of the Qudian class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Qudian class action lawsuit or have questions concerning your rights regarding the Qudian class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com.  Lead plaintiff motions for the Qudian class action lawsuit must be filed with the court no later than March 22, 2020.

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 six 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.

Class Period: December 13, 2018 - January 15, 2020
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