Robbins LLP: Wins Finance Holdings, Inc. (WINS) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins LLP announces that a class action complaint was filed against Wins Finance Holdings, Inc. (NASDAQCM: WINS) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Wins securities between October 29, 2015 and March 29, 2017, for alleged violations of the Securities Exchange Act of 1934 by Wins’ officers and directors. Wins, through its subsidiaries, provides financing solutions to small and medium-sized enterprises in the People’s Republic of China.
Wins Accused of Overstating Future Growth Prospects
According to the complaint, on October 18, 2015, Wins announced the completion of its business combination to be acquired by Sino Mercury Acquisition Corp. In connection with the acquisition, Jianming Hao, Chief Executive Officer of Wins, stated, “I’m confident that Wins’ strong team with experience in financial markets . . . will provide significant value for our stockholders.” In subsequent public statements, Wins officials misled investors regarding the company’s business, operational and compliance policies, and projected earnings, valuation and future business operations. In particular, Wins officials emphasized that the company’s disclosure controls and procedures were effective, noted a positive outlook for the company’s financial position, and predicted its pipeline of leasing opportunities and revenues to increase. Furthermore, the complaint alleges that Wins manipulated the market by falsely misrepresenting its U.S. headquarters in order to gain inclusion on the Russell Index.
On December 9, 2016 SeekingAlpha.com published an article entitled “Wins Finance Holdings is Overvalued: 75% Downside,” which criticized the company’s valuation and trading levels as “absurd” and noted “the management team has a track record of shareholder destruction.” Thereafter, a series of articles highlighted that Wins’ management had a history of involvement in securities fraud, the company’s largest shareholder had previously been accused of and sanctioned for market manipulation, and that the company’s purported Times Square headquarters were non-existent and as such would be excluded from Russell indexes. In reaction to these articles, Wins’s stock fell nearly 58% from a closing price of $345.00 per share on February 2, 2017 to close at $144.99 per share on March 31, 2017.
Wins Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.