A lawsuit was filed on behalf of investors in Yirendai Ltd – ADR (NYSE:YRD) shares over alleged securities laws violations and NYSE:YRD investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/29/2016 -- The Shareholders Foundation announced that an investor, who purchased shares of Yirendai Ltd – ADR (NYSE:YRD), filed a lawsuit in California over alleged violations of Federal Securities Laws by Yirendai Ltd.
Investors who purchased shares of Yirendai Ltd – ADR (NYSE:YRD) have certain options and for certain investors are short and strict deadlines running. Deadline: October 25, 2016. NYSE:YRD investors should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The plaintiff alleges on behalf of purchasers of Yirendai Ltd – ADR (NYSE:YRD) common shares between May 11, 2016 and August 24, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 11, 2016 and August 24, 2016 the Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was experiencing an increasing amount of fraud related to customer applications for its loan products; (2) that the implementation of new anti-fraud regulations by the Chinese government, in response to increasing fraud in the industry, could have a negative impact on the Company's performance; and (3) that, as a result of the foregoing, Defendants' statements about Yirendai's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
Yirendai Ltd reported that its annual Total Revenue rose from $31.89 million in 2014 to $209.09 million in 2015 and that its Net Loss of $4.50 million in 2014 turned into a Net Income of $43.83 million in 2015.
Shares of Yirendai Ltd – ADR (NYSE:YRD) grew from $3.68 per share in February 2016 to as high as $42.34 per share on August 16, 2016.
On August 24, 2016, it was reported that China imposed limits on peer-to-peer lending, citing authorities' concern over defaults and fraud among the nation's 2,349 online lenders. Specifically, it was reported that under the new regulations, lenders are barred from taking public deposits or selling wealth-management products, and must appoint qualified banks as custodians and improve information disclosure. It was also reported that individual borrowing is now limited to 1 million yuan ($150,000) from peer-to-peer websites, including a maximum of 200,000 yuan from any one site. Shares of Yirendai Ltd – ADR (NYSE:YRD) declined on August 25, 2016, to as low as $22.05 per share.
Those who purchased Yirendai Ltd shares have certain options and should contact the Shareholders Foundation.
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