Attention investors who purchased shares of Qudian Inc. between December 13, 2018 and January 15, 2020:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against Qudian Inc. ("Qudian") concerning whether Qudian and certain of the Company's directors and/or officers made materially false and misleading statements and failed to disclose materially adverse facts during the period December 13, 2018 and January 15, 2020, inclusive (the "Class Period"), concerning Qudian's business, operations and prospects. These misrepresentations and omissions artificially inflated the price of Qudian's stock throughout the Class Period.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the American Depositary Shares (“ADS”) of Qudian, Inc. (“Qudian” or the “Company”) (NYSE: QD) between December 13, 2018 and January 15, 2019, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased ADS of Qudian during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall toll free at (888) 969-4242, by e-mail at email@example.com.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (i) regulatory developments in China threatened to negatively impact Qudian’s fiscal full year 2019 (“FY19”) financial results; (ii) Qudian’s business was unprepared to mitigate the risks associated with these regulatory changes; (iii) as a result, Qudian’s loan portfolio was plagued by growing delinquency rates; (iv) all of the foregoing made Qudian’s repeated assertions concerning its FY19 financial guidance unrealistic; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times. As a result of defendants’ alleged false and misleading statements, the Company’s ADS traded at artificially inflated prices during the Class Period.
According to the Complaint, on January 16, 2020, Qudian issued a press release announcing “that the Company withdraws its fiscal 2019 guidance and will not issue guidance in the near term due to uncertainty related to the recent regulatory and operating environment.” The press release stated that “China’s online consumer finance industry was affected by several regulatory developments in the fourth quarter of 2019, including further restrictions on loan collection practices, more stringent user data privacy rules and the requirements for P2P lending platforms to orderly exit their P2P businesses,” which had “reduced the availability of funding for consumer credit and driven up delinquency rates across the industry, including the Company’s loan portfolio.”
On this news, ADS of Qudian fell over 19%, closing at $3.55 per ADS on January 16, 2020, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than March 23, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed 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.
Rigrodsky & Long, P.A., with offices in Delaware and New York, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in securities fraud and corporate class actions nationwide.
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