Robbins Geller Rudman & Dowd LLP Updates Notice of Filing of Class Action Suit against Jianpu Technology Inc.
NEW YORK--(BUSINESS WIRE)--Nov 26, 2018--Robbins Geller Rudman & Dowd LLP ( http://www.rgrdlaw.com/cases/jianpu/ ) updates its notice of the filing of a class action on behalf of purchasers of Jianpu Technology Inc. (NYSE:JT) American Depositary Shares (“ADS”) in and/or traceable to the Company’s initial public offering (the “IPO”) on or about November 16, 2017. Robbins Geller previously announced that an action was filed on October 25, 2018 in the Southern District of New York captioned Panther Partners Inc. v. Jianpu Technology Inc., et al., No. 18-cv-9848, which addressed false statements made in connection with the IPO that minimized the regulatory risks to Jianpu’s revenues. Since the case was filed, Jianpu conceded that its loan recommendation revenue has already declined by 49% year-over-year due to credit tightening.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Jianpu ADS in and/or traceable to the Company’s IPO on or about November 16, 2017 to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than December 26, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/jianpu/.
The complaint charges Jianpu, certain of its officers and directors, its parent company and the underwriters of the IPO with violations of the Securities Act of 1933. Jianpu operates an on-line platform under the brand name “Rong360” in the People’s Republic of China. The Company’s revenues are primarily generated from fees paid by financial service providers for loan recommendation services.
On October 20, 2017, Jianpu filed with the SEC a Form F-1 Registration Statement (the “Registration Statement”) for the IPO, which was declared effective by the SEC on November 15, 2017. On November 17, 2017, Jianpu filed with the SEC a prospectus for the IPO (the “Prospectus”), which forms part of the Registration Statement. Jianpu sold 22.5 million ADS at $8.00 per share in the IPO, raising net proceeds of approximately $164.9 million.
The complaint alleges that the Registration Statement and Prospectus for the IPO contained inaccurate statements of material fact and/or omitted material information required to be disclosed in order to make such statements not misleading. Specifically, the Registration Statement and Prospectus failed to disclose, among other things, that the China Banking Regulatory Commission and three other Chinese regulators had issued rules in August 2016 requiring peer-to-peer (“P2P”) lending companies to, among other things, appoint qualified banking institutions as custodians and disclose their use of deposits, and that China had determined to create the Financial Stability and Development Committee (“FSDC”) under its State Council to coordinate major financial reforms, as well as to implement market regulation and monetary and industrial policy, all of which would likely result in the disqualification of a significant majority of P2P lenders in China resulting in a dramatic reduction in the total number of existing, as well as potential, financial service providers that had been the primary source of Jianpu’s revenue.
The complaint alleges that on November 21, 2017, just two business days after the IPO, several new sources announced that the FSDC had issued an urgent notice to provincial governments urging them to suspend regulatory approval of new internet micro-loan companies. Thereafter, the price of Jianpu ADS fell more than 38% during the three-day period ended November 24, 2017, to close at $4.90 per ADS.
Then, after the close of trading on November 19, 2018, Jianpu announced its third quarter 2018 financial results for the interim period ended September 30, 2018. Attempting to explain why the Company was reporting lower revenues than it had led the investment community to expect, defendants conceded that “lending activities [had] slowed down in July and August” 2018, citing “credit tightening across the retail financial services sector,” and that, as a result, Jianpu’s “revenues from the loan recommendation [had] decreased by 49% year-over-year.” Jianpu reported revenues of just $64.6 million, far less than the $89.7 million the investment community had been led to expect. The price of Jianpu ADS declined another 15% on this news when trading resumed on November 20, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Jianpu ADS in and/or traceable to the Company’s IPO on or about November 16, 2017 (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181126005810/en/
CONTACT: Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
KEYWORD: UNITED STATES ASIA PACIFIC NORTH AMERICA CHINA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Geller Rudman & Dowd LLP
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PUB: 11/26/2018 09:00 PM/DISC: 11/26/2018 09:01 PM