Robbins Arroyo LLP: Uxin Limited (UXIN) Misled Shareholders According to Lawsuit
SAN DIEGO & BEIJING--(BUSINESS WIRE)--May 6, 2019--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Uxin Limited (Nasdaq: UXIN) filed another class action complaint against Uxin Limited for alleged violations of the Securities Act of 1933 pursuant to its June 27, 2018 initial public offering (“IPO”). Uxin is the largest used car e-commerce platform in China.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/uxin-limited-may-19/
Uxin Accused of Inflating its IPO Price
According to the complaint, leading up to the IPO, Uxin claimed that it was experiencing rapid growth in both its consumer-aimed and business-focused segments. Based on its misleading registration documents, Uxin held its IPO in June 2018, and generated over $205 million in proceeds. In particular, Uxin failed to disclose that the company would stop providing complementary services to its customers and instead connect consumers to dealers who would provide such services. As a result, Uxin’s auction business, which sells used cars to dealers, would be negatively impacted. Just two months after the IPO, in August 2018, Uxin announced a strategic change in its approach in serving customers with car-selling needs. Shortly thereafter, in November 2018, Uxin reported that its transaction volume had decreased by 8.5%. Following this news, Uxin’s share price closed at $4.50, approximately 50% of the IPO price of $9.00 per share. The stock now trades even lower at just $2.72 per share, approximately 70% below the IPO price.
Uxin Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20190506005554/en/
CONTACT: Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 05/06/2019 12:04 PM/DISC: 05/06/2019 12:04 PM