WILMINGTON, Del., Aug. 30, 2016 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Yirendai Ltd. (NYSE:YRD)?
- Did you purchase your shares between May 11, 2016 and August 24, 2016, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the American Depository Shares (“ADSs”) of Yirendai Ltd. (“Yirendai” or the “Company”) (NYSE:YRD) between May 11, 2016 and August 24, 2016, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased ADSs of Yirendai during the Class Period, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com; or at: http://rigrodskylong.com/investigations/yirendai-ltd-yrd.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (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. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on August 24, 2016, Bloomberg 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, Bloomberg 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. Bloomberg 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.
On this news, ADSs of Yirendai dropped over 22%, closing at $24.52 per share on August 24, 2016, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than October 25, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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