BENSALEM, Pa.–(BUSINESS WIRE)–Jan 26, 2021–
Law Offices of Howard G. Smith reminds investors of the upcoming March 22, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased 9F Inc. (“9F” or the “Company”) (NASDAQ: JFU ) securities: (a) 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 (b) between August 14, 2019 and September 29, 2020, inclusive (the “Class Period”).
Investors suffering losses on their 9F 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 [email protected].
In August 2019, 9F completed its initial public offering (“IPO”), selling approximately 8.9 million American Depositary Shares at $9.50 a share.
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 RMB 858 million as of June 30, 2019, a 210% sequential increase.
On this news, 9F shares fell $0.59, or 5%, to close at $10.35 per ADS 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. Moreover, 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.
On this news, 9F shares fell $0.31 per ADS, or nearly 5%, to close at $6.00 per ADS 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.
On this news, 9F shares fell $0.57, or 14%, to close at $4.05 per ADS 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 ADS on September 29, 2020, thereby damaging investors. Since the IPO, 9F ADSs have traded as low as $1.40 per ADS, an 85% decline from the IPO price.
The complaint filed 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) the purported value and benefits of the Company’s financial institution partners and its tri-party cooperation business model did not in fact exist and/or were materially overstated, given that 9F and PICC had been engaged in an ongoing contractual dispute regarding payment of service fees under the Cooperation Agreement; (2) the collectability of service fees owed to 9F by PICC under the Cooperation Agreement was in doubt and at serious risk of non-payment; (3) there was a significant risk that PICC would no longer provide credit insurance and guarantee protection to investors and institutional funding partners; and (4) as a result of the foregoing, the Company’s platform, business model, reputation and financial results had been materially impaired.
If you purchased or otherwise acquired 9F securities pursuant/traceable to the IPO and/or during the Class Period, you may move the Court no later than March 22, 2021 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 [email protected], or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20210126005118/en/
CONTACT: Law Offices of Howard G. Smith
Howard G. Smith, Esquire
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: Law Offices of Howard G. Smith
Copyright Business Wire 2021.
PUB: 01/26/2021 11:00 AM/DISC: 01/26/2021 11:01 AM