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iCrowdNewswire Feb 3, 2021 11:41 AM ET

9F Inc. ACTION ALERT: Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York against Lizhi, Inc.


9F Inc. ACTION ALERT: Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York against Lizhi, Inc.

Legal Newswire

iCrowd Newswire - Feb 3, 2021

Wolf Haldenstein Adler Freeman & Herz LLP  announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired 9F Inc. American Depositary Receipts (“ADR’s):

  1. 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
  2. between August 14, 2019 and September 29, 2020, inclusive (the “Class Period”).

All   investors who purchased ADR’s of Lizhi, Incand incurred losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.

If you have incurred losses in the ADR’s of Lizhi, Inc., you may, no later than March 22, 2021request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the shares of ADR’s of Lizhi, Inc.

On or about January 17, 2020 the company conducted its IPO, selling 4.1 million Lizhi ADR’s at $11.00 per ADR. Defendants generated approximately $45 million in gross offering proceeds from their sale of Lizhi’s securities in the IPO.

By the commencement of this action, Lizhi shares were trading below $4 per share, a decline of over 63% from the offering price.

The filed complaint alleges that the registration statement for the IPO contained false and/or misleading statements and/or failed to disclose that:

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New YorkChicago, and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at  www.whafh.com.

Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. 

Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired 9F Inc. 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”). 9F investors have until March 22, 2021 to file a lead plaintiff motion.

If you suffered a loss on your 9F investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/9f-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

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 RMB858 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.

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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. To be a member of the Class 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. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchase.

Contact Information:

Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774








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