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Class Action Cases

A class action has been filed on behalf of XYF Investors. Click "Join this Class Action" above.

Attorneys

X Financial

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Zhang Investor Law announces a class action lawsuit on behalf of shareholders who bought shares of X Financial (NYSE: XYF) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with X Financial’s September 2018 initial public stock offering (the “IPO” or the “Offering”), inclusive (the “Class Period”). The lawsuit seeks to recover damages for X Financial investors under the federal securities laws.

If you bought X Financial securities between pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with X Financial’s September 2018 initial public stock offering (the “IPO” or the “Offering”), and would like to join the action, please click “Join This Class Action,” above.

Press Release

SHAREHOLDER ALERT: Zhang Investor Law Announces a Securities Class Action Lawsuit Against X Financial – XYF

New York, N.Y., December 14, 2019. Zhang Investor Law announces the filing of a class action lawsuit on behalf of shareholders who bought shares of X Financial (NYSE: XYF)pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with X Financial’s September 2018 initial public stock offering (the “IPO” or the “Offering”), inclusive (the “Class Period”).

To join the XYF class action, go to http://zhanginvestorlaw.com/cases/x-financial/ call Sophie Zhang, Esq. toll-free at 800-991-3756 or email info@zhanginvestorlaw.com for information on the class action.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT.

According to the lawsuit, throughout the Class Period (1) the Company’s total loan facilitation amount was not growing, but rather was contracting; (2) the number of investors actively using X Financial’s platform was shrinking; (3) demand from small- and medium-sized enterprises for the Company’s Xiaoying Preferred Loans (“preferred loans”) was plummeting; (4) the Company’s preferred loans had performed so poorly that it had begun drastically scaling back its preferred loans in the first quarter of 2018, several months before the IPO, and was in the process of phasing out such loans completely; (5) demand for the Company’s Xiaoying Card Loans was also plummeting; (6) the revenue and loan facilitation growth provided in the Registration Statement leading up to the IPO was achieved by relaxed credit and due diligence standards, under which the Company had underwritten tens of millions of dollars’ worth of poor quality loans that suffered from a disproportionately high risk of default as compared to the Company’s earlier loan vintages; (7) the Company was suffering from accelerated delinquency rates from poor quality loans that it had underwritten in the first, second, and third quarters of 2018, which had caused the Company’s delinquency rate to sharply rise; (8) the Company’s product mix had significantly deteriorated; (9) the Company’s net revenue was on track to decline by 22% during the third quarter of 2018; and (10) as a result, defendants’ statements about X Financial’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 7, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, go to http://zhanginvestorlaw.com/cases/x-financial/ or to discuss your rights or interests regarding this class action, please contact Sophie Zhang, Esq. of Zhang Investor Law toll free at 800-991-3756 or via e-mail at info@zhanginvestorlaw.com.

Zhang Investor Law represents investors worldwide.