LOS ANGELES, Oct. 2, 2020 /PRNewswire/ — The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired LexinFintech Holdings Ltd. (“LexinFintech” or the “Company”) (NASDAQ: LX) securities between April 30, 2019 and August 24, 2020, inclusive (the “Class Period”). LexinFintech investors have until November 9, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On August 25, 2020, Grizzly Research issued a report, alleging, among other things, that LexinFintech is “reporting artificially low delinquency rates by essentially giving borrowers who are already in default new funds to make payments” and that the Company engaged in undisclosed related party transactions. The report also questioned the Company’s purported growth, citing a review of LexinFintech’s web traffic.
On this news, the Company’s share price fell $0.47, or 5%, to close at $8.04 per share on August 25, 2020, thereby damaging investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) LexinFintech reported artificially low delinquency rates by giving borrowers in default new funds to make payments; (2) the Company’s business model exposes shareholders to enormous losses by prioritizing Chinese lenders for off-balance sheet loans; (3) the Company exaggerated its user base; (4) the Company was facilitating direct peer to peer lending contrary to Chinese law; (5) the Company engaged in undisclosed related party transactions; (6) the Company lacked adequate internal controls; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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If you purchased LexinFintech securities during the Class Period, you may move the Court no later than November 9, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased LexinFintech securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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SOURCE The Law Offices of Frank R. Cruz, Los Angeles