BENSALEM, Pa. , Sept. 29, 2020 /PRNewswire/ -- Law Offices of Howard G. Smith 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 LexinFintech Holdings Ltd. ("LexinFintech" or the "Company") (NASDAQ: LX): (a) 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").
Investors suffering losses on their LexinFintech investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com .
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 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.
If you purchased or otherwise acquired LexinFintech securities, you may move the Court no later than November 9, 2020 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire , of Law Offices of Howard G. Smith , 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com , or visit our website at www.howardsmithlaw.com .
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
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SOURCE Law Offices of Howard G. Smith