The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of 9F Inc. (JFU) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired 9F Inc. (“9F” or the “Company”) (NASDAQ: JFU) securities: (a) pursuant and/or traceable to the registration statement and related prospectus in connection with the Company’s August 14, 2019 initial public offering (the “IPO” or “Offering”); and/or (b) between August 14, 2019 and September 29, 2020, inclusive (the “Class Period”). 9F investors have until March 22, 2021 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

In August 2019, 9F completed its initial public offering (“IPO”), selling approximately 8.9 million American Depositary Shares at $9.50 a share.

On September 27, 2019, 9F reported its second quarter 2019 financial results for the period that ended prior to the IPO. The Company stated that its net accounts receivable increased from RMB277 million as of March 31, 2019 to RMB858 million as of June 30, 2019, a 210% sequential increase.

On this news, 9F shares fell $0.59, or 5%, to close at $10.35 per ADS on September 27, 2019.

On December 5, 2019, 9F reported its third quarter 2019 financial results for the quarter during which the IPO had been conducted. The Company stated that its net accounts receivables had increased more than ten-fold from RMB180 million as of December 31, 2018 to RMB1.9 billion as of September 30, 2019.

On this news, 9F shares fell $0.50, or nearly 5%, over two consecutive trading sessions to close at $9.60 per ADS on December 6, 2019.

On June 12, 2020, 9F revealed an ongoing dispute with Property and Casualty Company Limited (“PICC”) involving RMB2.2 billion in unpaid service fees. The Company stated that RMB1.4 billion in service fees that had previously been recorded as accounts receivable were now recognized as fully impaired.

On June 17, 2020, 9F described the devastating consequences of the Company’s dispute with PICC, including that the two entities “are pursuing legal actions against each other” and that 9F sought damages of approximately RMB2.3 billion from PICC to cover the outstanding service fees and related late payment losses. Moreover, 9F had “suspended [its] cooperation with PICC on new loans under [its] direct lending program since December 2019,” causing total net revenues to decrease by 54.4% year-over-year.