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Qfin Holdings' Securities Class Action Deadline Looms

Levi & Korsinsky, LLP, a prominent law firm specializing in securities litigation, is alerting investors regarding Qfin Holdings, Inc. (NASDAQ: QFIN). If you purchased QFIN securities between March 18, 2026, and August 25, 2026, it’s crucial that you reach out to the firm as you may have the right to recover damages. The deadline for investors to seek lead plaintiff status is set for November 27, 2026.

The impetus for this alert is rooted in a series of troubling disclosures that Qfin Holdings made in August 2026. On that date, the company released its second-quarter financial results, revealing an astonishing 76.8% year-over-year decrease in net income to approximately RMB 401.4 million. Following this disclosure, the stock experienced a significant decline, with shares falling by $2.18, or 18.91%, from $11.53 to a closing price of $9.35 the very next trading day. This decline raised serious concerns among investors about the company's financial health and stability.

Timeline of Misrepresentation

Between March and August of 2026, the firm’s management had provided misleading reassurances about the stability of Qfin amidst tightening regulatory circumstances in the People’s Republic of China (PRC). During this period, they portrayed the emerging regulatory changes as a transformative opportunity rather than a significant threat. The company’s narrative evolved from claiming it was well-positioned to handle industry pressures in March, to insisting by May that it had effectively “withstood the pressure.” However, reality struck as they ultimately pointed to a liquidity crisis within the industry, citing the downturn affecting peer companies.

The complaint outlines a timeline of key disclosures that illustrate a pattern of misrepresentation:

• - March 17, 2026: Qfin announces its fourth-quarter results and communicates to analysts about expectations of enhanced resilience post-regulatory changes.
• - March 18, 2026: The class period begins.
• - April 27, 2026: In its annual report, Qfin claims to maintain solid asset quality despite the mounting regulatory scrutiny.
• - May 26, 2026: The first-quarter results report highlights alleged business resilience and reduced risks amid stricter regulations.
• - Late June 2026: A liquidity shock spreads across the loan facilitation sector in China.
• - August 25, 2026: Qfin's second-quarter release reveals the dramatic year-over-year drop in net income and weak outlook for the upcoming third quarter, marking the end of the class period.

Investors Urged to Take Action

The lawsuit alleges Qfin Holdings misled its investors by painting an overly optimistic picture of its operational and financial integrity amid significant regulatory changes. As emphasized by Joseph E. Levi, one of the firm's attorneys, timely and accurate disclosure of material developments is essential for maintaining fair market practices. The misleading statements that painted the company as resilient are said to have contributed significantly to the later stock plunge once the truth was revealed.

The class action suit has been filed in the United States District Court for the Eastern District of New York under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors who suffered losses due to the alleged misstatements are strongly encouraged to seek guidance from Levi & Korsinsky.

Frequently Asked Questions

• - What specific misstatements are alleged? The complaint alleges that QFIN made materially false or misleading statements concerning their financial results during the class period.
• - When did the misleading statements occur? The class period is from March 18, 2026, to August 25, 2026.
• - What should I do if I've sold my shares? You may still be eligible to recover losses even if you no longer hold shares, provided you purchased them during the class period.

For investors interested in evaluating their options, contact Levi & Korsinsky at (212) 363-7500 or via email at [email protected] for a free assessment. Investigate your eligibility for recovery or learn more about your rights as a shareholder.

In this volatile climate, understanding your rights and options as an investor is imperative. Do not miss the upcoming deadline to make your voice heard.