- Company Name
- Qudian Inc.
- Stock Symbol
- Relevant Period
- October 18, 2017 to November 20, 2017
- Motion Deadline
- February 10, 2018
- Southern District of New York
On December 18, 2017, Robbins Geller Rudman & Dowd LLP filed a complaint in the United States District Court for the Southern District of New York alleging violations of the federal securities laws by Qudian Inc.
At least one other action has been filed. The claims in the actions encompass purchasers of Qudian securities between October 18, 2017 through November 20, 2017.
If you purchased Qudian's securities between October 18, 2017 through November 20, 2017 you may qualify to serve as a lead plaintiff in this action. The deadline to file lead plaintiff motions is February 10, 2018.
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS
ACTION SUIT AGAINST QUDIAN INC.
New York – December 18, 2017 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/qudian/) today announced that a class action has been commenced on behalf of purchasers of Qudian Inc. (“Qudian”) (NYSE:QD) American Depositary Shares (“ADSs”) in or traceable to the Company’s October 18, 2017 initial public offering (“IPO”). This action was filed in the Southern District of New York and is captioned Foat v. Qudian Inc., et al, No. 17-cv-09875.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from December 12, 2017. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/qudian/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Qudian, certain of its officers and/or directors and the underwriters of its IPO with violations of the Securities Act of 1933. Qudian is a financial lending company focused on providing small cash credit products to underserved borrowers, such as those with less credit history, lower monthly incomes or limited access to traditional financial institutions.
On September 18, 2017, the Company filed with the SEC a registration statement on Form F-1 for the IPO, which, after several amendments, was declared effective on October 17, 2017 (the “Registration Statement”). The Registration Statement was used to sell to the investing public approximately 37.5 million Qudian ADSs, representing 37.5 million Qudian Class A ordinary shares, at $24 per share.
The complaint alleges that the Registration Statement for the IPO was negligently prepared and, as a result, contained untrue statements of material fact and/or omitted material facts necessary to make the statements contained therein not misleading. Specifically, the complaint alleges that the Registration Statement contained inaccurate statements of material fact because it failed to disclose, among other things, that the Company was engaged in improper lending and collection practices; that the Company had various undisclosed risks in its loan portfolio; that because of the Company’s improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators and its most important strategic partner, Ant Financial; and that the Company had failed to implement necessary safeguards to protect customer data.
On December 12, 2017, Qudian ADSs closed at $13.19 per ADS, a 45% decline from the price at which Qudian ADSs had been sold to the investing public less than two months earlier in the IPO.
Plaintiff seeks to recover damages on behalf of all purchasers of Qudian ADSs in or traceable to the Company’s October 18, 2017 IPO (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as a leading law firm advising and representing U.S. and international investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For the third consecutive year, the Firm ranked first in both the total amount recovered for investors and the number of shareholder class action recoveries in ISS's SCAS Top 50 Report. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm’s clients. Robbins Geller not only secures recoveries for defrauded investors, it also implements significant corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
David A. Rosenfeld, 800-449-4900