9F Inc.

According to the complaint, 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 allegedly failed to disclose to investors that:

(i) 9F’s provision for doubtful accounts receivable mainly related to accounts receivable with a single party, PICC;
(ii) 9F and PICC had been engaged in an ongoing contractual dispute regarding payment of service fees under the Cooperation Agreement;
(iii) PICC was challenging, delaying, and/or otherwise failing to pay service fees to 9F under the Cooperation Agreement;
(iv) the amount of service fees under the Cooperation Agreement that were unpaid or at serious risk of being unpaid was material and trending upward;
(v) as a result of the foregoing, the collectability of service fees owed to 9F by PICC under the
Cooperation Agreement was in doubt and at serious risk of non-payment; and
(vi) as a result of the foregoing, the Registration Statement had materially misrepresented the amount of 9F’s accounts receivable and materially understated the Company’s allowance for doubtful accounts.”

The complaint also alleges that:
(i) the purported value and benefits of the Company’s financial institution partners and its tri-party cooperation business model did not in fact exist and/or were materially overstated, given that 9F and PICC had been engaged in an ongoing contractual dispute regarding payment of service fees under the Cooperation Agreement;
(ii) the collectability of service fees owed to 9F by PICC under the Cooperation Agreement was in doubt and at serious risk of nonpayment;
(iii) there was a significant risk that PICC would no longer provide credit insurance and guarantee protection to investors and institutional funding partners; and
(iv) as a result of the foregoing, the Company’s platform, business model, reputation and financial results had been materially impaired.