PPDAI Group Inc. : American Depositary Shares Securities Litigation
On or around 06/15/2020 (Date of last review)
Filing Date: November 26, 2018
According to the Complaint, PPDAI Group Inc. is an online P2P consumer finance company in China and the first online consumer finance marketplace in China connecting borrowers and investors whose needs are unserved or underserved by traditional financial institutions.
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) PPDAI 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’s customers were using PPDAI-provided loans to repay existing loans they otherwise could not afford to repay, thereby inflating PPDAI’s revenues and active borrower numbers and increasing the likelihood of defaults; (3) PPDAI was experiencing increasing delinquency rates, negatively affecting PPDAI’s reserves; (4) PPDAI’s purported “rapid growth” in the number and amount of loans had materially dropped off; (5) PPDAI was providing online loans to college students despite a government ban on the practice; (6) PPDAI was engaged in overly aggressive and improper collection practices; and (7) as a result of its improper lending, underwriting, and collection practices, PPDAI was subject to heightened risk of adverse actions by Chinese regulators.
Plaintiff filed an amended Complaint on January 8, 2019. On February 21, 2019, the Court issued an Order consolidating cases and an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a second amended Complaint on April 22.
Company & Securities Information
Defendant: PPDAI Group Inc.
Industry: Misc. Financial Services
Ticker Symbol: PPDF
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
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