NEW YORK, Feb. 3, 2021 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of investors who purchased or otherwise acquired 9F Inc. ("9F" or the "Company") JFU American Depositary Receipts ("ADR's"):
- pursuant and/or traceable to the registration statement and related prospectus in connection with the Company's August 14, 2019 initial public offering (the "IPO" or "Offering"); and/or
- between August 14, 2019 and September 29, 2020, inclusive (the "Class Period").
All investors who purchased ADR's of 9F Inc. and incurred losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the ADR's of 9F Inc., you may, no later than March 22, 2021, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the shares of ADR's of 9F Inc.
PLEASE CLICK LINK TO JOIN THIS CASE
In August 2019, 9F completed its initial public offering ("IPO"), selling 8.9 million American Depositary Receipts at $9.50 per ADR.
On September 27, 2019, 9F reported its second quarter 2019 financial results for the period that ended prior to the IPO. The Company stated that its net accounts receivable increased from RMB277 million as of March 31, 2019 to RMB858 million as of June 30, 2019, a purported 210% sequential increase. On this news, 9F shares fell $0.59, or 5%, to close at $10.35 per ADR on September 27, 2019.
On December 5, 2019, 9F reported its third quarter 2019 financial results for the quarter during which the IPO had been conducted. The Company stated that its net accounts receivables had increased more than ten-fold from RMB180 million as of December 31, 2018 to RMB1.9 billion as of September 30, 2019. On this news, 9F shares fell $0.50, or nearly 5%, over two consecutive trading sessions to close at $9.60 per ADS on December 6, 2019.
On June 12, 2020, 9F revealed an ongoing dispute with Property and Casualty Company Limited ("PICC") involving RMB2.2 billion in unpaid service fees. The Company stated that RMB1.4 billion in service fees that had previously been recorded as accounts receivable were now recognized as fully impaired.
On June 17, 2020, 9F described the devastating consequences of the Company's dispute with PICC, including that the two entities "are pursuing legal actions against each other" and that 9F sought damages of approximately RMB2.3 billion from PICC to cover the outstanding service fees and related late payment losses. Additionally, 9F had "suspended [its] cooperation with PICC on new loans under [its] direct lending program since December 2019," causing total net revenues to decrease by 54.4% year-over-year. 9F shares fell $0.31 per ADR, or nearly 5%, to close at $6.00 per ADR on June 17, 2020.
On June 24, 2020, the Company reported a valuation allowance for the accounts receivable from PICC of more than $1.4 billion. 9F shares fell $0.57, or 14%, to close at $4.05 per ADR on June 25, 2020.
On September 29, 2020, 9F announced its unaudited financial results for the first half of 2020 ended June 30, 2020. The Company disclosed that its loan origination volume had fallen over 90%, the number of active borrowers utilizing their platform had decreased over 80% and the Company's total net revenues had plummeted over 60% during the first half of 2020 as compared to the latter half of 2019. On this news, 9F shares fell $0.20, or 18%, to close at $0.91 per ADR on September 29, 2020.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Wolf Haldenstein Adler Freeman & Herz LLP
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
