Case Page

 

Case Status:    DISMISSED    
On or around 07/10/2017 (Stipulation and order of dismissal (voluntary dismissal))

Filing Date: August 26, 2016

According to the law firm press release, the filed complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was experiencing an increasing amount of fraud related to customer applications for its loan products; (2) that the implementation of new anti-fraud regulations by the Chinese government, in response to increasing fraud in the industry, could have a negative impact on the Company’s performance; and (3) that, as a result of the foregoing, Defendants’ statements about Yirendai’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On August 24, 2016, Bloomberg reported that China imposed limits on peer-to-peer lending, citing authorities’ concern over defaults and fraud among the nation’s 2,349 online lenders. Specifically, Bloomberg reported that under the new regulations, lenders are barred from taking public deposits or selling wealth-management products, and must appoint qualified banks as custodians and improve information disclosure. Bloomberg also reported that individual borrowing is now limited to 1 million yuan ($150,000) from peer-to-peer websites, including a maximum of 200,000 yuan from any one site.

On this news, Yirendai’s share price fell $6.92 per share, or 22%, to close at $24.52 per share on August 24, 2016, on unusually heavy trading volume.

On November 29, 2016, the Court appointed Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended complaint on January 27, 2017.

On June 20, 2017, the Court issued an Order granting Defendants' Motion to Dismiss with leave to amend. Plaintiffs did not amend their complaint, and rather the parties stipulated to a dismissal of this case on July 10.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: YRD
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: C.D. California
DOCKET #: 16-CV-06437
JUDGE:
DATE FILED: 08/26/2016
CLASS PERIOD START: 05/11/2016
CLASS PERIOD END: 08/24/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Prongay & Murray LLP
    1925 Century Park East, Suite 2100 , Glancy Prongay & Murray LLP, CA 90067
    (310) 201-9150 (310) 432-1495 ·
  2. Law Offices of Howard G. Smith
    3070 Bristol Pike, Suite 112, Law Offices of Howard G. Smith, PA 19020
    215.638.4847 215.638.4867 ·
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 16-CV-06437
JUDGE:
DATE FILED: 01/27/2017
CLASS PERIOD START: 04/26/2016
CLASS PERIOD END: 08/24/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Prongay & Murray LLP
    1925 Century Park East, Suite 2100 , Glancy Prongay & Murray LLP, CA 90067
    (310) 201-9150 (310) 432-1495 ·
  2. The Rosen Law Firm, P.A. (New Los Angeles)
    355 South Grand Ave, Suite 2450, The Rosen Law Firm, P.A. (New Los Angeles), CA 90071
    (213) 785-2610 (213) 226-4684 ·
No Document Title Filing Date