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Tenet Fintech Group Inc. Class Action Lawsuit - PKKFF

Company Name
Tenet Fintech Group Inc.
Stock Symbol
PKKFF
Class Period
September 2, 2021 to October 13, 2021
Motion Deadline
January 18, 2022
Court
Eastern District of New York
50 days left to seek lead plaintiff status

Case Summary

The Tenet Fintech class action lawsuit seeks to represent purchasers of Tenet Fintech Group Inc. f/k/a Peak Fintech Group Inc. (OTC: PKKFF) publicly traded securities between September 2, 2021 and October 13, 2021, inclusive (the “Class Period”) and charges Tenet Fintech along with certain of its top executives with violations of the Securities Exchange Act of 1934.  The Tenet Fintech class action lawsuit was commenced on November 19, 2021 in the Eastern District of New York and is captioned Van Boxtel v. Tenet Fintech Group Inc. f/k/a Peak Fintech Group Inc., No. 21-cv-6461.

If you wish to serve as lead plaintiff of the Tenet Fintech class action lawsuit, please provide your information by clicking here.  You can also contact attorney Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the Tenet Fintech class action lawsuit must be filed with the court no later than January 18, 2022.

CASE ALLEGATIONS: Tenet Fintech purports to be the parent company of a group of financial technology subsidiaries operating in China’s commercial lending industry.

The Tenet Fintech class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that, among other things: (i) Tenet Fintech did not own 51% of Asia Synergy Financial Capital Ltd. (“ASFC”) through Tenet Fintech’s wholly owned subsidiary Wuxi Aorong Ltd.; (ii) Tenet Fintech did not disclose its actual ownership structure of ASFC, an undisclosed and potentially problematic nominee shareholder agreement; (iii) Huayan Kun Tai Technology Company Ltd. did not own the Heartbeat insurance platform; (iv) the Heartbeat insurance platform did not exist prior to the alleged acquisition of Heartbeat; (v) Tenet Fintech faced imminent delisting from NASDAQ due to non-compliance with known regulations; and (vi) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.

On September 21, 2021, Tenet Fintech issued a press release stating that NASDAQ and the U.S. Securities and Exchange Commission (“SEC”) advised Tenet Fintech that the review of its Form 40-F was taking longer than originally expected.  As such, trading of Tenet Fintech shares on the NASDAQ was temporarily halted.  On September 28, 2021, Tenet Fintech issued a press release stating that it would withdraw its Form 40-F filed with the SEC.  On September 30, 2021, Tenet Fintech shares began trading over-the-counter under the ticker symbol “PKKFF.”  As a result of the delisting from NASDAQ, Tenet Fintech’s share prices fell more than 17%.

Then, on October 4, 2021, market analyst Grizzly Research LLC published a report discussing and analyzing Tenet Fintech, stating that Tenet Fintech’s acquisition of Heartbeat was rife with factual inaccuracies and suspicious transactions.  On October 13, 2021, Grizzly Research published a rebuttal report to Tenet Fintech’s Q&A response to the October 4, 2021 report, which expanded on the original analyst report regarding Tenet Fintech’s purported ownership in ASFC.  On this news, Tenet Fintech’s share prices fell by approximately 6%, damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Tenet Fintech publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Tenet Fintech class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Tenet Fintech class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Tenet Fintech class action lawsuit.  An investor’s ability to share in any potential future recovery of the Tenet Fintech class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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