Company: PPDAI Group Inc.
Class Period: November 14, 2017 —
Court: U.S.D.C. – Eastern District of New York
Deadline: January 25, 2019
Kaskela Law LLC announces that a class action lawsuit has been filed against PPDAI Group Inc. (NYSE: PPDF) (“PPDAI” or the “Company”) on behalf of investors who purchased the Company’s American Depositary Shares (“Shares”) in connection with and following PPDAI’s November 2017 initial public offering (“IPO”) of Shares.
On or about November 14, 2017, PPDAI completed its IPO of Shares by selling over 17 million Shares to investors at $13.00 per Share. The class action complaint alleges that investors purchased the Company’s Shares in connection with and following the IPO and suffered investment losses as a result.
Specifically, the investor class action lawsuit alleges that certain material representations, reported financial results and trends, and purported risk disclosures made in connection with the IPO were false and misleading because: (i) 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; (ii) Many of PPDAI’s customers were using PPDAI-provided loans to repay existing loans they otherwise could not afford to repay, thereby inflating the Company’s revenues and active borrower numbers and increasing the likelihood of defaults; (iii) PPDAI was experiencing increasing delinquency rates, negatively affecting the Company’s reserves; (iv) PPDAI’s purported “rapid growth” in the number and amount of loans had materially dropped off; (v) PPDAI was providing online loans to college students despite a government ban on the practice; (vi) PPDAI was engaged in overly aggressive and improper collection practices; and (vii) as a result of its improper lending, underwriting, and collection practices, PPDAI was subject to heightened risk of adverse actions by Chinese regulators.
IMPORTANT DEADLINE: Investors who purchased PPDAI’s Shares in connection with and following the Company’s IPO may, no later than January 25, 2019, seek to be appointed as a lead plaintiff representative of the investor class.
Investors who purchased the Company’s Shares and suffered an investment loss in excess of $100,000 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740 to discuss their important legal rights and options, or complete the form on this page for additional information.