Wins Finance Holdings Inc. Class Action Lawsuit
- Company Name
- Wins Finance Holdings Inc.
- Stock Symbol
- Class Period
- October 31, 2018 to July 6, 2020
- Motion Deadline
- September 23, 2020
- Central District of California
The Wins Finance Holdings Inc. class action lawsuit charges Wins Finance and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Wins Finance securities between October 31, 2018 and July 6, 2020, inclusive (the “Class Period”). The Wins Finance class action lawsuit was commenced on July 24, 2020 in the Central District of California and is captioned Kamau v. Wins Finance Holdings Inc., No. 20-cv-06656.
Wins Finance purports to offer financial guarantees, as well as financial leasing, advisory, consultancy, and agency services to small and medium-sized enterprises in the People’s Republic of China. In 2014, Wins Finance entered into an RMB580 million credit arrangement with Guohong Asset Management Co., Ltd. pursuant to which Guohong’s repayment to Wins Finance was due in October 2019.
The Wins Finance class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (i) the ultimate repayment of the Guohong loan was highly uncertain; (ii) nonpayment of the Guohong loan would have a significant impact on Wins Finance’s financial and operating condition; (iii) weaknesses in Wins Finance’s internal control over its financial reporting persisted despite Wins Finance’s repeated assurances to investors that it was taking steps to remediate these weaknesses; (iv) the foregoing issues, among others, made the resignation of Wins Finance’s independent auditor foreseeably likely; and (v) as a result, Wins Finance’s public statements were materially false and misleading at all relevant times.
On October 31, 2019, Wins Finance filed a notification on Form NT 20-F of its inability to timely file its Form 20-F with the U.S. Securities and Exchange Commission. The following trading day, the price of Wins Finance shares declined nearly 6%.
Then, on May 26, 2020, Wins Finance announced that Wins Finance had received a delisting determination letter from Nasdaq. On this news, the price of Wins Finance shares declined more than 22%.
Finally, on July 6, 2020, Wins Finance revealed that Centurion ZD CPA & Co. (“CZD”) had resigned as Wins Finance’s independent auditor after less than three years in that role. Wins Finance also disclosed that “CZD expressed an adverse opinion on [Wins Finance]’s internal control over financial reporting as of June 30, 2017 and 2018 because of material weaknesses,” and that CDZ identified the following material weaknesses: “lack of sufficient accounting personnel qualified in US [Generally accepted accounting principles], and SEC reporting; and insufficient accounting staff, which results in a failure to segregate duties sufficiently to ensure a timely and proper preparation and review of the financial statements.” On this news, the price of Wins Finance shares fell an additional 6.1%, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Wins Finance securities during the Class Period to seek appointment as lead plaintiff in the Wins Finance class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Wins Finance class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Wins Finance class action lawsuit. An investor’s ability to share in any potential future recovery of the Wins Finance class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Wins Finance class action lawsuit or have questions concerning your rights regarding the Wins Finance class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Wins Finance class action lawsuit must be filed with the court no later than September 23, 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 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.