NEW YORK, March 3, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of 9F Inc. ("9F" or the "Company")(NASDAQ: JFU). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether 9F and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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In August 2019, 9F conducted its initial public offering ("IPO"), selling approximately 8.9 million American depositary shares ("ADSs") priced at $9.50 per ADS. Shortly after the IPO, several directors resigned from the Company's board between October 2019 and March 2020, purportedly for "personal reasons." In its quarterly reports following the IPO, the Company reported dramatic increases in its net accounts receivable," which the Company would later attribute to the deterioration of its relationship with Property and Casualty Company Limited ("PICC"), previously touted as the exclusive provider of insurance protection to all new 9F loans with terms of 12 months or fewer.
Then, on June 12, 2020, in a filing with the U.S. Securities and Exchange Commission ("SEC"), 9F belatedly discussed an ongoing dispute with PICC, involving RMB2.2 billion ($324.5 million) in unpaid service fees and RMB1.4 billion ($206.5 million) in service fees that had previously been recorded as accounts receivable and which were now recognized as fully impaired, resulting in multiple legal actions in China. On June 15, 2020, 9F filed a Form NT 20-F with the SEC stating that it could not timely file its annual report with the SEC because of its dispute with PICC. Two days later, on June 17, 2020, 9F issued a press release announcing that 9F had "suspended . . . cooperation with PICC on new loans under our direct lending program" and that 9F and PICC were "pursuing legal actions against each other[.]"
Since the IPO, 9F's ADS price has fallen sharply, closing as low as $0.80 per share, a decline of nearly 92% from the offering price.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
