Investors panic as LX LexinFintech “exposes shareholders to enormous losses”.
Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of LexinFintech Holdings Ltd. (NASDAQ: LX): (i) pursuant and/or traceable to LexinFintech’s initial public offering (“IPO”) conducted on or about December 21, 2017; and/or (ii) between December 21, 2017, and August 24, 2020, inclusive (the “Class Period”) of the important November 9, 2020 lead plaintiff deadline in the securities class action first filed by the firm. The lawsuit seeks to recover damages for LexinFintech investors under the federal securities laws.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) LexinFintech reported artificially low delinquency rates by giving borrowers in default new funds to make payments; (2) LexinFintech’s business model exposes shareholders to enormous losses by prioritizing Chinese lenders for off-balance-sheet loans; (3) LexinFintech exaggerated its user base; (4) LexinFintech was facilitating direct peer to peer lending contrary to Chinese law; (5) LexinFintech engaged in undisclosed related party transactions; (6) LexinFintech lacked adequate internal controls; and (7) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.