NEW YORK, Nov. 28, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against PPDAI Group Inc. (“PPDAI Group” or the “Company”) (NYSE: PPDF) in the United States District Court for the Eastern District of New York, on behalf of purchasers of the securities of PPDAI Group pursuant and/or traceable to PPDAI’s November 2017 Initial Public Offering (“IPO”).
The Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (1) PPDAI Group 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 Group’s customers were using PPDAI Group-provided loans to repay existing loans they otherwise could not afford to repay, thereby inflating PPDAI Group’s revenues and active borrower numbers and increasing the likelihood of defaults; (3) PPDAI Group was experiencing increasing delinquency rates, negatively affecting PPDAI Group’s reserves; (4) PPDAI Group’s purported “rapid growth” in the number and amount of loans had materially dropped off; (5) PPDAI Group was providing online loans to college students despite a government ban on the practice; (6) PPDAI Group was engaged in overly aggressive and improper collection practices; and (7) as a result of its improper lending, underwriting, and collection practices, PPDAI Group was subject to heightened risk of adverse actions by Chinese regulators. When the true details entered the market, the lawsuit claims that investors suffered damages.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the January 25, 2019 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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