X Financial


Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In X Financial To Contact The Fir

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in X Financial (or the “Company”) (NYSE:XYF) of the February 7, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. 

If you invested in X Financial American Depositary Shares (“ADSs”) pursuant and/or traceable to the Company’s September 19, 2018 IPO (the “IPO”), and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.  

The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who acquired X Financial American Depositary Shares pursuant and/or traceable to the Company’s September 19, 2018 IPO. The case, Chen v. X Financial et al, No. 19-cv-06908 was filed on December 9, 2019.

The lawsuit focuses on whether the Company and its executives violated federal securities laws in the Company’s Registration Statement by making false and/or misleading statements and/or failing to disclose that: (1) the Company’s total loan facilitation amount was not growing, but rather was contracting; (2) the number of investors actively using X Financials’ platform was shrinking; (3) demand from SMEs for the Company’s preferred loans was plummeting; (4) the Company’s preferred loans had performed so poorly that it had begun drastically scaling back its preferred loans in the first quarter of 2018, several months before the IPO, and was in the process of phasing out such loans completely; (5) demand for the Company’s card loans was also plummeting; (6) the revenue and loan facilitation growth provided in the Registration Statement leading up to the IPO was achieved by relaxed credit and due diligence standards, under which the Company had underwritten tens of millions of dollars’ worth of poor quality loans that suffered from a disproportionately high risk of default as compared to the Company’s earlier loan vintages; (7) the Company was suffering from accelerated delinquency rates from poor quality loans that it had underwritten in the first, second, and third quarters of 2018, which had caused the Company’s delinquency rate to sharply rise; (8) the Company’s product mix had significantly deteriorated; (9) the Company’s net revenue was on track to decline by 22% during the third quarter of 2018; and (10) as a result, the Registration Statement was materially false and/or misleading and failed to state information required to be stated therein.

On November 22, 2019, X Financials’ ADSs closed at $1.74 per ADS. This price represented an 81.68% decline from the $9.50 per share price at which X Financials’ ADSs had been sold to the investing public in the IPO.

As of the date this complaint was filed, X Financials’ ADSs continue to trade below the $9.50 per share IPO price.
 

Contact us

X Financial

Loading captcha, please wait...

* The submission of this form does not create an attorney-client relationship.

Details

Filed on 12/10/2019

Ticker NYSE:XYF

Lead Plaintiff Deadline 02/07/2020

13 days remaining

Office

685 Third Avenue 26th Floor

10017 New York, New York

Phone (212) 983-9330

Fax (212) 983-9331

Counsel

Richard W. Gonnello rgonnello@faruqilaw.com Phone (212) 983-9330 Fax (212) 983-9331

Finding us

Our Offices


Our offices are nationwide. If you have any questions about a case or our firm, please contact us.

New York

685 Third Avenue 26th Floor
New York, New York 10017
(212) 983-9330
(877) 247-4292
(212) 983-9331

California

10866 Wilshire Boulevard Suite 1470
Los Angeles, California 90024
(424) 256-2884
(424) 256-2885

Delaware

3828 Kennett Pike Suite 201
Wilmington, Delaware 19807
(302) 482-3182
(302) 482-3612

Georgia

3975 Roswell Rd Suite A
Atlanta, Georgia 30342
(404) 847-0617
(404) 506-9534

Pennsylvania

1617 JFK Boulevard, Suite 1550
Philadelphia, Pennsylvania 19103
(215) 277-5770
(215) 277-5771

Faruqi & Faruqi office in New York, New York

Faruqi & Faruqi office in Los Angeles, California

Faruqi & Faruqi office in Wilmington, Delaware

Faruqi & Faruqi office in Atlanta, Georgia

Faruqi & Faruqi office in Philadelphia, Pennsylvania