Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In LexinFintech Holdings Ltd. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in LexinFintech Holdings Ltd. (“LexinFintech” or the “Company”) (NASDAQ:LX) of the November 9, 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 LexinFintech stock or options between April 30, 2019 and August 24, 2020 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 firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the District of Oregon on behalf of all those who purchased Lexinfintech securities between April 30, 2019 and August 24, 2020 (the “Class Period”). The case, Solis v. Lexinfintech Holdings, LTD et al, No. 20-cv-01562 was filed on September 9, 2020, and has been assigned to Judge Michael H. Simon.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose 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) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, on August 25, 2020, Grizzly Research published a report describing, among other things, how the Company: (1) reports artificially low delinquency rates by giving borrowers in default new funds to make payments; (2) has a business model that exposes shareholders to enormous losses; (3) was still conducting direct peer to peer lending despite claiming otherwise, (4) lacked internal controls; and (5) conducted undisclosed related party transactions.
On this news, LexinFintech’s stock fell from a closing price of $8.51 on August 24, 2020 to $8.04 on August 25, 2020—a $0.47 or 5.52% drop.
LexinFintech Holdings Ltd.
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Filed on 09/11/2020
Lead Plaintiff Deadline 11/09/2020
49 days remaining
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