Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against LexinFintech Holdings Ltd. (LX)
LOS ANGELES, Oct. 7, 2020 --Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming November 9, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired LexinFintech Holdings Ltd. ("LexinFintech" or the "Company") American Depositary Shares ("ADSs" or "shares") pursuant and/or traceable to the Company's December 2017 initial public offering ("IPO" or the "Offering"); and/or (b) securities between December 18, 2017 and August 24, 2020, inclusive (the "Class Period").
If you suffered a loss on your LexinFintech investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/lexinfintech-holdings-ltd/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
In December 2017, LexinFintech completed its IPO, selling 12 million ADSs at $9.00 per share.
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, 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 wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Glancy Prongay & Murray LLP
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