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Kessler Topaz Meltzer & Check, LLP: Investor Class Action Filed Against 360 DigiTech, Inc. - QFIN for Securities Fraud Violations

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or acquired 360 DigiTech, Inc. (“360 DigiTech”) (NASDAQ: QFIN) securities between April 30, 2020 and July 7, 2021, both dates inclusive (the “Class Period”).
 

360 DigiTech investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described above, you may no later than September 13, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.


360 DigiTech, through its subsidiaries, operates a digital consumer finance platform under the 360 Jietiao brand in the People’s Republic of China (“PRC”). Its platform provides online consumer finance products to the borrowers funded by institutional funding partners. 360 DigiTech also provides incremental credit assessment, collection, and other services, as well as guarantee for defaulted loans. 360 DigiTech was formerly known as 360 Finance, Inc. and changed its name to 360 DigiTech, Inc. in September 2020.

The Class Period commences on April 30, 2020, when 360 DigiTech filed an Annual Report on a Form 20-F reporting its financial and operating results for the year ended December 31, 2019.  In the Annual Report and throughout the Class Period, the defendants touted 360 DigiTech’s customer data protection practices and security systems that protect user information and abide by other network security requirements under such laws and regulations.

The truth was revealed on July 8, 2021, when reports circulated on social media to the effect that 360 DigiTech’s core product, the 360 IOU app, had been removed from major app stores. The reports came on the heels of the removal of other companies’ apps as Chinese regulators investigated their customer data protection practices. For example, an article published by the 21st Century Business Herald on July 8, 2021 indicated that “[t]he reason for the removal may be related to the discussion with the central bank and other financial regulators on April 29 this year about 13 Internet financial platforms and requesting rectification.”

Following this news, 360 DigiTech’s stock price fell $7.12 per share, or 21.48%, to close at $26.02 per share on July 8, 2021.

On July 9, 2021, Seeking Alpha reported that 360 DigiTech confirmed the removal of its 360 IOU app from the Android app store and quoted a 360 DigiTech spokesperson, who disclosed that 360 DigiTech had “submitted a new rectification plan and stepped up the whole process.”

The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) 360 DigiTech had been collecting personal information in violation of relevant PRC laws and regulations; (2) accordingly, 360 DigiTech was exposed to an increased risk of regulatory scrutiny and/or enforcement action; and (3) as a result, 360 DigiTech’s public statements were materially false and misleading at all relevant times. 

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  James Maro, Esq. (484) 270-1453; or toll-free at (844) 887-9500; or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.

Please complete this form relating to your transactions for 360 DigiTech, Inc. (NASDAQ: QFIN) securities between April 30, 2020 and July 7, 2021, both dates inclusive (the “Class Period”).

You may also contact James Maro, Esq. (484) 270-1453; or toll free at (844) 887-9500; or you may submit your information via email at info@ktmc.com; or you may click here to print a PDF of this form.
 

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# of Shares
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# of Contracts
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Did you purchase shares of 360 DigiTech, Inc. - QFIN prior to the Class Period?
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The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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