NEW YORK - (NewMediaWire) - September 14, 2020 - 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, click here: www.faruqilaw.com/LX. There is no cost or obligation to you.
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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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding LexinFintech’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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