Glancy Prongay & Murray LLP Reminds Investors of the Deadline in the Class Action Lawsuit Against PPDAI Group Inc
LOS ANGELES, Jan. 07, 2019 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the January 25, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of investors that purchased PPDAI Group Inc. (“PPDAI” or the “Company”) (NYSE: PPDF ) securities pursuant and/or traceable to PPDAI’s November 2017 Initial Public Offering (“IPO”). PPDAI investors have until January 25, 2019 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
The Company conducted its initial public offering of 17 million American depositary shares in November 2017 at $13 per share.
Shortly after the IPO, however, Chinese regulators banned the issuance of new online peer-to-peer licenses, citing illegal practices by companies such as PPDAI. On this news, PPDAI’s share price fell $2.62, or more than 24%, to close at $8.18 per share on November 22, 2017, thereby injuring investors.
Then, on December 1, 2017, Chinese regulators issued an order outlining specific guidelines meant to correct improper practices among online lenders such as PPDAI. On this news, PPDAI’s share price fell $2.44, or more than 25%, over several trading days, to close at $7.16 per share on December 7, 2017, thereby further injuring investors.
The Complaint filed in this class action alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) PPDAI Group was engaged in predatory lending practices that saddled subprime borrowers and those with poor or limited credit histories with high interest rate debt they could not repay; (2) many of PPDAI Group’s customers were using PPDAI Group-provided loans to repay existing loans they otherwise could not afford to repay, thereby inflating PPDAI Group’s revenues and active borrower numbers and increasing the likelihood of defaults; (3) PPDAI Group was experiencing increasing delinquency rates, negatively affecting PPDAI Group’s reserves; (4) PPDAI Group’s purported “rapid growth” in the number and amount of loans had materially dropped off; (5) PPDAI Group was providing online loans to college students despite a government ban on the practice; (6) PPDAI Group was engaged in overly aggressive and improper collection practices; and (7) as a result of its improper lending, underwriting, and collection practices, PPDAI Group was subject to heightened risk of adverse actions by Chinese regulators.
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If you purchased shares of PPDAI, you may move the Court no later than January 25, 2019 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 Lesley Portnoy, 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 firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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