Shareholder Alert: Robbins LLP Announces X Financial (XYF) Sued for Misleading Shareholders
December 12 2019 - 8:29PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of X Financial (NYSE: XYF) has sued the Company for
alleged violations of the Securities Act of 1933 pursuant to its
September 2018 initial public offering ("IPO"). X Financial
provides personal finance services in the People's Republic of
China.
If you suffered a loss as a result of X Financial's misconduct,
click here.
X Financial (XYF) Accused of Misleading Investors in
IPO
According to the complaint, X Financial completed its IPO on
September 19, 2018, offering 11.7 million American Depositary
Shares ("ADSs") at $9.50 per ADS and raising more than $111 million
in gross proceeds. Leading up to the IPO, X Financial claimed the
Company was growing rapidly. Despite positive forward-looking
statements, in November 2018, the Company's financial results for
third quarter 2018 revealed a 40% sequential increase and 270%
year-over-year increase in the delinquency rate for X Financial
loans and a significant reduction in loans facilitated in the
quarter. Then on April 25, 2019, X Financial disclosed in its
annual report for 2018 on Form 20-F that there had been a dramatic
increase in delinquency rates leading up to and during the IPO and
that these negative trends were accelerating. Finally, on May 21,
2019, X Financial revealed in an earnings call that the Company was
unlikely to achieve significant loan or revenue growth because its
referred loan business had failed. Since these disclosures, X
Financial's ADSs have consistently traded below $9.50. The stock
currently trades at around $1.80 per ADS, representing an 80%
plummet from its IPO price.
X Financial (XYF) Shareholders Have Legal Options
Contact us to learn more: Leo Kandinov (800) 350-6003
LKandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
LKandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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