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XYF LOSS NOTICE: TOP RANKED ROSEN LAW FIRM Announces Filing of Securities Class Action Lawsuit Against X Financial - XYF

NEW YORK, Dec. 14, 2019 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of the securities of X Financial (NYSE: XYF) pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with X Financial's September 2018 initial public stock offering (the "IPO"). The lawsuit seeks to recover damages for X Financial investors under the federal securities laws.
XYF LOSS NOTICE: TOP RANKED ROSEN LAW FIRM Announces Filing of Securities Class Action Lawsuit Against X Financial - XYF
To join the X Financial class action, go to https://www.rosenlegal.com/cases-register-1733.htmlA or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.comA or cases@rosenlegal.comA for information on the class action.NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. AN INVESTOR'S ABILITY TO SHARE IN ANY POTENTIAL FUTURE RECOVERY IS NOT DEPENDENT UPON SERVING AS LEAD PLAINTIFF.According to the lawsuit, the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) the Company's total loan facilitation amount was not growing, but rather was contracting; (2) the number of investors actively using X Financial's platform was shrinking; (3) demand from small- and medium-sized enterprises for the Company's Xiaoying Preferred Loans ("preferred loans") was plummeting; (4) the Company's preferred loans had performed so poorly that it had begun drastically scaling back its preferred loans in the first quarter of 2018, several months before the IPO, and was in the process of phasing out such loans completely; (5) demand for the Company's Xiaoying Card Loans was also plummeting; (6) the revenue and loan facilitation growth provided in the Registration Statement leading up to the IPO was achieved by relaxed credit and due diligence standards, under which the Company had underwritten tens of millions of dollars' worth of poor quality loans that suffered from a disproportionately high risk of default as compared to the Company's earlier loan vintages; (7) the Company was suffering from accelerated delinquency rates from poor quality loans that it had underwritten in the first, second, and third quarters of 2018, which had caused the Company's delinquency rate to sharply rise; (8) the Company's product mix had significantly deteriorated; (9) the Company's net revenue was on track to decline by 22% during the third quarter of 2018; and (10) as a result, defendants' statements about X Financial's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
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