Uxin Limited (UXIN) Accused of Inflating its IPO Price

According to the complaint against the company for alleged violations of the Securities Act of 1933 pursuant to the company's June 27, 2018 initial public offering ("IPO"), Uxin Limited (UXIN) held its IPO in June 2018, and generated over $205 million in proceeds based on misleading offering documents. In particular, Uxin failed to disclose that the company would stop providing complementary services to its customers and instead connect consumers to dealers who would provide such services. As a result, Uxin's auction business, which sells used cars to dealers, would be negatively impacted. Just two months after the IPO, in August 2018, Uxin announced a strategic change in its approach in serving customers with car-selling needs. Shortly thereafter, in November 2018, Uxin reported that its transaction volume had decreased by 8.5%. Following this news, Uxin's share price closed at $4.50, approximately 50% of the IPO price of $9.00 per share. The stock now trades even lower at just $3.29 per share.

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