QFIN CLASS ACTION ALERT: Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against 360 DigiTech, Inc.
Jul 23, 2021 2:08 PM ET
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The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed against 360 DigiTech, Inc. on behalf of those who purchased or acquired 360 DigiTech securities between April 30, 2020 and July 7, 2021, inclusive (the "Class Period").
360 DigiTech, through its subsidiaries, operates a digital consumer finance platform under the 360 Jietiao brand in the People's Republic of China ("PRC"). Its platform provides online consumer finance products to the borrowers funded by institutional funding partners. 360 DigiTech also provides incremental credit assessment, collection, and other services, as well as guarantee for defaulted loans. 360 DigiTech was formerly known as 360 Finance, Inc. and changed its name to 360 DigiTech, Inc. in September 2020.
The Class Period commences on April 30, 2020, when 360 DigiTech filed an Annual Report on a Form 20-F reporting its financial and operating results for the year ended December 31, 2019. In the Annual Report and throughout the Class Period, the defendants touted 360 DigiTech's customer data protection practices and security systems that protect user information and abide by other network security requirements under such laws and regulations.
The truth was revealed on July 8, 2021, when reports circulated on social media to the effect that 360 DigiTech's core product, the 360 IOU app, had been removed from major app stores. The reports came on the heels of the removal of other companies' apps as Chinese regulators investigated their customer data protection practices. For example, an article published by the 21st Century Business Herald on July 8, 2021 indicated that "[t]he reason for the removal may be related to the discussion with the central bank and other financial regulators on April 29 this year about 13 Internet financial platforms and requesting rectification."
Following this news, 360 DigiTech's stock price fell $7.12 per share, or 21.48%, to close at $26.02 per share on July 8, 2021.
On July 9, 2021, Seeking Alpha reported that 360 DigiTech confirmed the removal of its 360 IOU app from the Android app store and quoted a 360 DigiTech spokesperson, who disclosed that 360 DigiTech had "submitted a new rectification plan and stepped up the whole process."
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) 360 DigiTech had been collecting personal information in violation of relevant PRC laws and regulations; (2) accordingly, 360 DigiTech was exposed to an increased risk of regulatory scrutiny and/or enforcement action; and (3) as a result, 360 DigiTech's public statements were materially false and misleading at all relevant times.
360 DigiTech investors may, no later than September 13, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
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