China Commercial Credit, Inc. ("CCCR"), through its subsidiaries, operates as a microcredit company in the People's Republic of China.

According to the law firm press release, the Company issued materially false and misleading financial statements about its true financial condition by misstating the Company’s involvement in risky loans and loan guarantee obligations. In a February 18, 2014 Forbes article, CCCR’s CEO was quoted as saying that “[highly risky loans] among microcredit companies [in China] are not widespread.” On May 9, 2014, in a public offering, CCCR sold 1,650,386 of its shares at $3.99 per share, with net proceeds to it of $6.14 million. In the prospectus, dated May 8, 2014, CCCR represented that it estimates loss on its guarantee business to be about 1% of the contract amount.

On July 25, 2014, CCCR issued a press release stating that (a) it had paid out $5.4 million in loan guarantees in Q1 2014, and had received only $0.7 million in cash and $2.1 million in one-year notes from the borrowers, and (b) it had paid out $3.7 million in guarantees in Q2 2014, of which it had only recovered $1.1 million, and converted $1.6 million of it to one-year notes. On this news, CCCR’s stock price fell $1.20, or 32%, damaging investors.

On October 31, 2014, the Court issued an Order appointing lead Plaintiff and approving lead Counsel.

On December 29, 2014, an Order was issued transferring this case to the Southern District of New York.

An amended Complaint was filed on March 27, 2015. This was followed by a second amended Complaint on April 6.

The parties filed a Stipulation of Settlement on January 11, 2017. The Settlement was preliminarily approved on January 25. On June 1, 2017, the Court granted final approval of the Settlement and dismissed this case with prejudice. On July 28, the Court issued an Order granting Attorneys' Fees and Expenses. On December 20, the Court issued an Order granting Lead Plaintiffs' Motion for Distribution of Class Settlement Fund.