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Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of PPDAI Group Inc. Investors (PPDF)

December 1, 2018

LOS ANGELES--(BUSINESS WIRE)--Nov 30, 2018--Glancy Prongay & Murray LLP (“GPM”), a global investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that purchased or otherwise acquired 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.

Follow us for updates on Twitter: twitter.com/GPM_LLP.

If you purchased shares of PPDAI during the Class Period 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 shareholders@glancylaw.com, 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.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181130005603/en/

CONTACT: Glancy Prongay and Murray LLP, Los Angeles

Lesley Portnoy, 310-201-9150 or 888-773-9224

www.glancylaw.com

shareholders@glancylaw.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL

SOURCE: Glancy Prongay and Murray LLP

Copyright Business Wire 2018.

PUB: 11/30/2018 09:09 PM/DISC: 11/30/2018 09:09 PM

http://www.businesswire.com/news/home/20181130005603/en

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