According to the Complaint, Uxin is a used car e-commerce platform in China. The Company has two segments: Uxin Auction (or 2B business) sells used cars to dealers, and Uxin Used Car (or 2C business) sells used cars to consumers.
On May 29, 2018, Uxin filed a Form F-1 with the SEC, which forms part of the Registration Statement. After a series of amendments, the Registration Statement became effective on June 26, 2018. On June 28, 2018, Uxin filed with the SEC its IPO prospectus, which forms part of the Registration Statement.
The Complaint alleges that the Registration Statement was false and/or misleading and/or failed to disclose that: (1) Uxin was likely to stop providing complementary services such as inspections to its customers; (2) instead, Uxin would connect consumers to dealers who would provide such complementary services; (3) as a result, Uxin’s 2B business would be materially impacted; and (4) consequently, Defendants’ statements in the Registration Statement concerning Uxin’s business, operations, and prospects, were materially false and/or misleading.
On August 14, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on October 25.
On May 6, 2020, the Court granted an application to stay the case while the parties attempted mediation. The Court lifted the stay on September 4. On December 10, the parties notified the Court that they had reached a Settlement in principle.