Pomerantz LLP is investigating claims on behalf of investors of 9F Inc. . Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 7980.
In August 2019, 9F conducted its initial public offering (“IPO”), selling approximately 8.9 million American depositary shares (“ADSs”) priced at $9.50 per ADS. Shortly after the IPO, several directors resigned from the Company’s board between October 2019 and March 2020, purportedly for “personal reasons.” In its quarterly reports following the IPO, the Company reported dramatic increases in its net accounts receivable,” which the Company would later attribute to the deterioration of its relationship with Property and Casualty Company Limited (“PICC”), previously touted as the exclusive provider of insurance protection to all new 9F loans with terms of 12 months or fewer.
Then, on June 12, 2020, in a filing with the U.S. Securities and Exchange Commission (“SEC”), 9F belatedly discussed an ongoing dispute with PICC, involving RMB2.2 billion ($324.5 million) in unpaid service fees and RMB1.4 billion ($206.5 million) in service fees that had previously been recorded as accounts receivable and which were now recognized as fully impaired, resulting in multiple legal actions in China. On June 15, 2020, 9F filed a Form NT 20-F with the SEC stating that it could not timely file its annual report with the SEC because of its dispute with PICC. Two days later, on June 17, 2020, 9F issued a press release announcing that 9F had “suspended . . . cooperation with PICC on new loans under our direct lending program” and that 9F and PICC were “pursuing legal actions against each other[.]”
Since the IPO, 9F’s ADS price has fallen sharply, closing as low as $0.80 per share, a decline of nearly 92% from the offering price.
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Robert S. Willoughby
888-476-6529 ext. 7980