Jianpu Technology Inc. (JT) Accused of Filing Misleading Registration Statement
According to the filed class action complaint against the company’s officers and directors for alleged violations of the Securities Act of 1933 in connection with the company’s November 2017 initial public offering (“IPO”), Jianpu Technology Inc. (JT) held its IPO, selling 22.5 million American Depositary Shares (“ADS”) at $8 per ADS, raising approximately $164.9 million. Jianpu’s registration statement stated that the company had experienced substantial growth in the years leading up to the IPO and noted significant opportunity to deliver inclusive financial services to its Chinese customers. However, Jianpu failed to disclose that the creation of China’s Financial Stability and Development Committee (“FSDC”) would likely result in the disqualification of a large majority of peer-to-peer lenders, resulting in a massive reduction in Jianpu’s revenue. On November 21, 2017, just two days after the IPO, the FSDC issued an urgent notice to provincial governments urging them to suspend regulatory approval of new internet, micro loan companies, causing Jianpu’s shares to plunge more than 33%, closing at $4.90 per ADS on November 24, 2017, and continues to trade significantly below its IPO price.
Jianpu Technology Inc. (JT) Shareholders Have Legal Options
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