What Happened?

On August 25, 2026, Qfin announced its second quarter 2026 results, revealing that total net revenue fell 31.6% year over year, and net income dropped 76.8% year over year. The Company also announced a projected 67% to 73% year over year decrease in third quarter non-GAAP net income due to rising funding costs and systemic liquidity shocks in the Chinese consumer credit market. The Company stated, in part that results were due to “continued industry contraction, tighter regulatory oversight, and a sudden industry-wide liquidity shock in late June.”

On this news, Qfin Holdings stock price fell $2.18 or 18.91% to close at $9.35 on August 26, 2026, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Defendants have overstated the resiliency and stability of Qfin’s business and financial results despite regulatory changes; (ii) Defendants likewise downplayed the true scope and severity of the negative impact that regulatory headwinds were likely to have, and were already having, on the Company’s business and financial results; and (iii) as a result, Defendants’ public statements were materially false and misleading at all relevant times.